21bitcoin Offers Interest Rate in Euros or Bitcoin

21bitcoin, a Salzburg-based Bitcoin scale-up, is now paying its customers interest on their euro balances. Starting today, the company will pay an annual interest rate of 1.21 percent, which can be credited in euros or automatically converted into Bitcoin without any conversion fee.

This move makes 21bitcoin the first provider in Europe to pass savings interest directly onto customers in Bitcoin. According to co-founder and CEO Daniel Winklhammer, 'Building Bitcoin wealth doesn't start with the purchase, but with the euro that's set aside for it.' He added that even the time between two purchases can now contribute to building wealth.

The interest rate is variable and applies to all eligible new and existing customers. The company claims that customer funds are not used for lending or proprietary trading, making this model a counterpoint to yield promises that have brought down several crypto providers in the past.