The landscape of banking in Europe is undergoing a significant shift, driven by the increasing popularity of cryptocurrencies. One of the latest initiatives comes from the French banking group BPCE, which is set to allow its customers to trade various cryptocurrencies directly through their existing banking apps. This ambitious move is noteworthy, given the traditionally cautious stance of many European banks regarding digital currencies.
New Regulations on the Horizon
As BPCE prepares to launch its service, the French government is concurrently working on cryptocurrency regulations. Recently, French lawmakers approved a proposal to tax certain assets, including crypto holdings, at a rate of one percent for individuals with over $2.3 million in such assets. This regulatory framework, still pending Senate approval, may influence the broader acceptance and growth of cryptocurrencies in the country.
Integrated Crypto Accounts in Banking Apps
Starting with four regional banks, including Banque Populaire Île-de-France, BPCE is enabling about two million users to buy and sell popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and USDC directly through their mobile banking applications. This feature will be further expanded to all twelve million of BPCE’s retail customers by 2026, reflecting a cautious yet proactive strategy to gauge customer interest before a full rollout.
A Broader Trend in European Banking
This initiative is aligned with a growing trend among other European banks to embrace cryptocurrencies. For instance, BBVA in Spain already allows trading in Bitcoin and Ethereum, while the digital platform Openbank by Santander supports five different cryptocurrencies. In Austria, Raiffeisen Bank is collaborating with the fintech company Bitpanda to make crypto more accessible to consumers. This movement signifies a potential resurgence of traditional banks in the face of competition from nimble fintech companies that have dominated the crypto space.
Affordable Access to Crypto
The transactions through BPCE’s service will be facilitated via a dedicated crypto account managed by its crypto division, Hexarq. Users will pay a monthly fee of €2.99, along with a transaction fee of 1.5 percent, which will have a minimum threshold of $1.16. By offering this in-app service, BPCE aims to provide a seamless experience, eliminating the need for third-party exchanges or separate wallets.
The introduction of cryptocurrency trading by a reputable financial institution like BPCE raises the question of wider adoption within the European financial sector. It appears that traditional banks are finally looking to reclaim their footing in the rapidly evolving digital finance landscape, suggesting a potential normalization of cryptocurrencies in everyday banking.
