Another step toward a Crypto-Bank
Munich-based Fidor Bank AG took another giant leap forward in their investment in decentralized and open-source technologies, becoming the first bank to use the Ripple payment protocol, an open-source decentralized payment network that focuses on conducting fast, cheap and secure transactions.
Fidor Bank provides personal and business banking services to residents of Germany, giving one more reason why Berlin is going crazy for Bitcoin, and giving owners of Bitcoin hope that their regional bank will wake up shortly as well. The CEO, Matthias Kröner, stated that the implementation of the new technology will save the company costs on conducting intra-bank transactions.
A Market Effect?
While the effects of this new partnership between Ripple and Fidor may remain on the lower-level and away from customers’ eyes, Fidor recognizes the value in building upon decentralized open-source methods, and stockholders are also noticing.
Fidor Bank AG stock price rose over 60% since Bitcoin.de partnership [source:bloomberg.com]
Fidor Bank AG stock has been looking very good since their unprecedented move in July to partner with Bitcoin.de, and the stock market seems interested in innovation and creativity, recognizing the aggressive movement into digital currencies Fidor has made during the last year:
- July 10th, 2013 – Bitcoin.de Partnership
- October 9th, 2013 – Kraken Partnership
- January 11, 2014 – Fidor Bitcoin Derivatives market
- May 5th, 2014 - Fidor announces Ripple Payment Network integration
By creating a Bitcoin-friendly environment that customers can safely store, buy and sell bitcoins and euros, account owners can rest assured that Fidor has just as much stake in the currency. There have been repeated reports of banks closing customers’ accounts due to associated activity with digital currencies [1, 2, 3]. The state of Ohio may have banned Bitcoin-for-Alcohol sales, and China… well.
The first Bank of many
Bitcoin expert Andreas Antonopoulos has pointed out on the Joe Rogan Experience Podcast that although there aren’t many Bitcoin-friendly banks around yet, all it takes is one maverick to recognize the inherent value that Bitcoin has as a technology, then all the rest of the banks will have no choice to participate in this new market.
And with so many bank branches taking overly aggressive actions upon their customers, Fidor Bank is showing themselves to be the standard of forward-thinking banks the Bitcoin community has been yearning for, and the rest of the world needs.