BBVA to Launch Bitcoin Trading and Custody Services in Switzerland

BBVA, a leading Spanish financial services firm, has announced on Friday it will launch a Bitcoin (BTC) trading service for its private banking customers based in Switzerland. However, according to Reuters, the bank will not provide any advisory on crypto assets-related investments, aside from the trading and custody services that will be enabled on June 21.

The bank has argued that high demand among its clients encouraged them to launch these products to diversify their portfolio, despite the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term that trading with cryptos implies, Alfonso Gomez, BBVA Switzerland’s Chief Executive, said. “Its extension to new countries or other types of customers will depend on whether the markets meet the appropriate conditions in terms of maturity, demand and regulation,” BBVA commented on the announcement.

About the decision to deploy custodial and trading services for digital assets, specifically in Switzerland, the firm stated that the country offers a clearer regulation, alongside widespread adoption that favors the crypto industry and any related business that wishes to deal with virtual currencies. That said, BBVA used the term 'significant desire' to describe the high demand among its customers in regards to crypto products.

Central Banks and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term

In addition, the announcement comes in the midst of central banks globally adopting measures like switching to stimulus taps and developing plans to launch central bank digital currencies (CBDCs). Recently, El Salvador’s government became the first country in the world to declare Bitcoin as legal tender.

In the recent BBVA’s business maneuvers, the firm announced in February that it plans to invest as much as $150 million in new capital into the fintech venture fund, Propel Ventures Partners to support the innovation in the financial technology industry. Propel has been able to partner with some of the leading names in the industry, including Coinbase, Hippo, Guideline, Neon and DocuSign, according to a report published by Finance Magnates.