German Neobank Bitwala is offering users with interest rates upto 4.3% on its Bitcoin interest account. All 80,000 users of German neobank Bitwala can now purchase, hold and earn interest on Bitcoin in their bank accounts after partnership with cryptocurrency lending platform Celsius Network.
Bitwala is the first classic fiat bank to offer interest for holding Bitcoin in an account, with three other decentralized finance apps offering similar products. While the DeFi products have higher rates, up to 8.6% per annum, Bitwala is more regulated and offers fiat and cryptocurrency services in 32 European countries under license from leading German bank SolarisBank AG.
Users can buy as little as 30 euro worth of Bitcoin and hold it in a free Bitcoin Interest Account, receiving interest payouts weekly. The Bitcoin in the accounts is lent out through the Celsius Network to “trusted partners.” Funds can be converted back to euros immediately.
This is a giant leap for the cryptocurrency and Defi industry at large. "It shows that cryptocurrency awareness in Germany and Europe at large is significant".