There is good news for all German cryptocurrency traders. As of today, they can make real-time payments, both incoming and outgoing, in tokens, on Bitpanda. This is possible thanks to a partnership between the exchange and Germany's leading bank, Deutsche Bank. This partnership is good news as it improves efficiency and security in transactions, providing solid liquidity for Bitpanda's German users.
The Agreement Details
The agreement made will allow Bitpanda to use an API-based account solution, which stands for Application Programming Interface, to access German-registered IBANs. As these codes are internationally agreed upon to help banks process their transfers outside their borders securely, relying on this circuit Bitpanda will be able to increase the security level of its fund transfers. All Bitpanda users active in the German-speaking region will receive a German IBAN for their deposits and withdrawals.
What is an API?
When we talk about Application Programming Interface we refer to a set of rules and protocols that allow software applications to communicate with each other. It is thanks to APIs that we can exchange data and functionality between devices. In an industry such as decentralised finance, but also, more generally, in traditional finance, they are absolutely fundamental.
Thanks to these interfaces, we can share only the necessary information, keeping all other internal details of the system hidden. No server or device using them will ever have to disclose all its data, as it will only expose the required packet.
The importance of being able to make instant cash payments
According to Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, banks can play a leading role in making cryptocurrencies accessible to the masses. Many of the best known analysts on the Web3 agree with this position, and we at SpazioCrypto also share this view. Bitpanda is perhaps the entity that most believes in this dogma, so much so that it has already sought agreements in the past with entities such as Raiffeisen Bank International, LBBW and N26. All in the area of cryptocurrency adoption.
According to Enzersdorfer-Konrad:
"Over the past ten years we have focused on trust, compliance and security. This is what makes these steps forward possible. Integrity and trust can't be bought, they have to be earned."
Bitpanda is one of the most trusted players on the landscape and it should come as no surprise that it was able to sign such an agreement with Deutsche Bank. The bank will now provide protected accounts and alternative, high-value payment solutions to crypto investors. This will streamline Bitpanda's operations and bring a substantial injection of liquidity into its coffers. Payment speed, in an era such as the one we are living in, is everything. The exchange has probably sealed a historic deal.
Bitpanda and Deutsche Bank: Is it a Win-win Deal?
According to Bitpanda's Deputy CEO, the banks have realised their lack of technical expertise in the cryptocurrency landscape. Their way of acting is centred on the quick placement of the financial product on the market, neglecting the research part that, in such a fast-moving field, is crucial. European regulation, like that of the United States, gives confidence to banks in the implementation of a portfolio of crypto services, but credit institutions do not have the infrastructure or the necessary knowledge.
This is why it makes sense, even for a bank, to seek agreements such as those proposed by Bitpanda. Traditional and decentralised finance can coexist, but one needs to be able to juggle both terrains.
.
