Maerki Baumann a private bank in Switzerland will become the second bank in the country to start accepting crypto assets. This is according to international investment financial news. The bank which has its headquarters in Zurich will accept cryptocurrency assets earned from cryptocurrency mining as well as payment for services. The bank is said to have come up with the decision because of increasing market demands as well as the rise of digital currencies.
Maerki Baumann added that it is not planning to offer direct crypto investments but will instead offer experts to its clients who are interested in cryptocurrency investments. The bank through a statement noted that they have been monitoring cryptocurrency development since it can be a good investment platform when regulated. According to the statement:
“At the moment we view digital currencies as an alternative vehicle of investment. However, we have limited data and experience on controlling volatility and trading volumes.”
The bank, however, noted that they are discouraging large crypto investments since the market is still young and very volatile. The bank added that:
“Digital currencies are at the moment not good for long-term investments because of the uncertainties surrounding the market.”
The bank is following the steps of Hypothekarbank Lanzburg which became the first bank to provide accounts for cryptocurrency related and blockchain companies. The bank was allowed by the Switzerland Financial Supervisory Authority to manage Bitcoin and other digital currencies which use Blockchain technology.
Banks are increasingly offering crypto related services to their customers. Initially, there was a cold war between digital currencies and banks. It was believed that cryptocurrencies are coming to replace banks by giving investors more power to control their finances. This led to many banks blocking all crypto related activities but with time they seem to be learning how to co-exist. All popular banks have either set up a crypto trading desk or are working on Blockchain technology which is the underlying technology of all digital assets.