WEG Bank AG, a German bank which has been partially acquired by three prominent blockchain firms – Nimiq, Token Pay and the Litecoin Foundation, has announced that it will process cryptocurrency payments for retailers by 2020. The bank is actively looking for applications for a sandbox test group, one that will be opened to the public by 2020, reported a media outlet.
Salamantex, the Austria-based payment solution provider, will act as the program partner, having already tested various point-of-sale devices in Austria. According to WEG Bank AG CEO Matthias von Hauff, this new bank “stakeholder” will allow retailers to receive payments in their wallets or cash out in fiat to a bank account. He added,
“All we do is provide the regulatory framework in the background, to make sure when the retailer receives crypto, he actually receives fiat in his bank account, if he chooses.”
The program will be managed by TEN31, the German bank’s new fintech brand and will initiate trade with Bitcoin [BTC], Litecoin [LTC], and other undisclosed cryptocurrencies. With plans to expand from ‘point-of-sale terminals,’ the CEO also revealed plans for initiating online checkouts, developing ATMs and the possibility “to integrate a [crypto] exchange into the bank as well.”
According to reports, Nimiq has already been working with the Malta-based decentralized exchange startup, Agora Trade, on such a technology called the OASIS [ Open Asset Swap Interaction Scheme]. Nimiq acquired a 9.9% stake in WEG Bank AG in April 2019 and as part of the acquisition, it can leverage the SEPA Instant banking network through WEG Bank. The blog detailing the acquisition read,
“This means that the combination of Nimiq OASIS, a non-custodial liquidity provider such as Agora.Trade and WEG Bank could enable customers at any of the 2’000+ banks in the SEPA Instant network to exchange value between crypto and fiat systems.”
Back in July, TokenPay re-allocated the 9.9% stake ownership to the Litecoin Foundation, in exchange for providing payment solutions for the bank and working with TokenPay on blockchain projects.