As a Payment Services Provider it will be able to issue debit cards, carry out real-time transfers to other banks and accept transfers into its own coffers.
It also means that deposits held at Bitcoin-Central would be backed by the same compensation laws and schemes that apply to cash held in other bank accounts. However this protection only applied to balances held in euros rather than bitcoins.
The move could convince many organisations and businesses to start accepting bitcoins as payment.
"The more we see governments and banks being willing to deal with Bitcoin, the more comfortable a lot of organisations are going to be making the step forward themselves,"said Vitalik Buterin, technical editor of Bitcoin magazine.
Also read a critique of this move in FORBES that is not so positive here http://www.forbes.com/sites/jonmatonis/2012/12/09/bitcoins-greatness-not-realized-by-succumbing-to-regulation/