German Savings Banks Consider Opening Crypto to 50 Million People Whilst Nike Buys NFT Startup

GB Market Commentary 15/12/2021

by Marcus Sotiriou

Bitcoin bounced yesterday as it hovers at around $48,500. As mentioned yesterday the much-anticipated FOMC meeting is taking place at 7pm today. Yesterday’s producer price data confirmed that inflationary pressures may feed through into next year, meaning there is a greater chance that the Fed will bring a hawkish tone. If that is the case, it would provide more pressure for risk on assets like crypto.

The biggest association of banks in Germany, consisting of 370 banks, is considering offering cryptocurrency-related services for their customers. This would enable over 50 million people to buy crypto through their checking accounts – clients would not have to go through KYC (Know Your Customer) procedures as the banks already have that information. A representative for the German Savings Banks Association said, “the interest in crypto is huge”. In October, it was announced that Spanish banks were also flirting with the idea of opening crypto to their customers, with some having already established plans. This shows that demand for crypto is becoming too big for banks to ignore, as they will most likely have to adapt and integrate crypto rather than ban it. The CEO of Australia’s largest bank, CBA (Commonwealth Bank of Australia), confirms this point as he said a few weeks ago, “we see risks in participating, but we see bigger risks in not participating”. The CBA is now set to become bank in Australia to offer crypto services. I think the fact that these major banks are globally starting to recognise crypto shows how early we are, and that crypto will be the best performing asset class over the next decade as we experience mainstream adoption.

Yesterday, Nike announced that the company has purchased NFT start-up RTFKT Studios. Nike said that the acquisition will allow them to “deliver next-generation collectibles that merge culture and gaming”. Last month Nike stepped into the metaverse as it integrated the virtual game Roblox, however this recent move will “extend their digital footprint and capabilities”. A company as big as Nike moving into the metaverse is a giant step for the social proofing of this industry and will give investors confidence.