Bitcoin: good news for BNP Paribas clients

Equipment news Bitcoin: good news for BNP Paribas clients

Published on 21.07.2022 at 16:25

There has not always been a great love story between banks and cryptocurrencies, and for good reason… Bitcoin, the “king” of cryptocurrencies, wants to be an alternative solution to the existing banking system. However, according to BNP Paribas, the trend appears to be reversing. Indeed, the bank intends to offer its own cryptocurrency custody solutions.

BNP Paribas Expected to Offer Crypto Custody Service Soon

According to CoinDesk media, BNP Paribas should soon offer a bank version of the cryptocurrency storage service. The project can become an alternative to wallets and cryptocurrency exchange platforms. In particular, BNP Paribas customers who own bitcoins will be able to store cryptocurrencies in a virtual safe in a bank.

The project is the result of a collaboration between Swiss cryptocurrency custodian Metaco and French bank BNP Paribas. Through this partnership, the bank wants to develop its asset custody subsidiary Paribas Securities Services.

This is not the first time that Metaco has tried to cooperate with French banks, since some time ago the company supported its subsidiary Société Générale in order to increase access to this type of service for professionals.

This announcement is a giant leap in the mass adoption of cryptocurrencies while the price of cryptocurrencies is at an all-time low.

Cryptocurrency and banks, chapter 2

Created during the economic crisis of 2008, Bitcoin is considered to be a disruption to the banking system. The Bitcoin network allows peer-to-peer transactions without the mediation of banks. As a result, it should be a freer, fully decentralized solution. This direct competition, however, has some drawbacks, because in the Bitcoin blockchain, a person is empowered during transactions, so if he makes a mistake in a transaction, he loses the sent capital, and this is irreversible… Bitcoin has no customer service.

For these reasons and their highly speculative nature, cryptocurrencies have long been a banking nightmare. Some agencies have even gone as far as illegal actions by banning their clients from investing in these virtual currencies.

BNP Paribas in Web3

Beyond blockchain, BNP Paribas is sensitive to so-called Web3 innovations. Indeed, last month the bank showed great interest in the metaverse by announcing the development of WIRED (Wearable Immersive Real Estate Dataroom).

The project is defined as a technology platform offering virtual 3D reproductions of real cities. To do this, the brand collaborated with such giants of the digital industry as Nvidia or Magic Leap.

Therefore, this new crypto custody announcement is part of the logic behind BNP Paribas’ image upgrade. We assume that, as a pioneer in this area, the French bank could attract new customers sensitive to this type of service. In addition, the novelty should make Bitcoin accessible to a wider audience that does not necessarily have advanced knowledge about the use of the crypto sector (wallet, blockchain, gas prices, etc.).

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