As the information shows published by Reuters, Germany passed a law that allows digital securities to be saved in blockchain.
Securities on blockchain
The new German law abolishes the traditional requirement that everyone who issues or holds securities must document the transaction by means of a paper certificate. In the future, in Germany, it will be possible to use the blockchain network also for managing securities
The securities can now be held in blockchain-based registries or in digital registries maintained by individual banks or custodians. German Justice Minister Christine Lambrecht praised the new law. According to her, they provide more legal clarity when it comes to the use of blockchain in the German securities sector. Labrecht noted that the law would increase the potential of new technologies.
The German Minister of Finance, Olaf Scholz, citing the benefits of using blockchain to reduce overheads and labor costs, said:
A paper certificate may be expensive for some nostalgic reasons, but the future belongs to its electronic version.
Germany has mixed opinions
Although Germany has a bullish attitude towards securities issued on blockchain, it has a completely different opinion when it comes to stablecoins issued by corporations.
Scholz recently stated that governments should “do everything in their power to keep the monetary monopoly in the hands of the states.” This comment was likely made in the light of the recent STABLE law proposed in the US, and also in the light of Facebook’s plans to issue Diem stablecoin.
Germany is known for its strict cryptocurrency laws. They can be a high entry barrier for smaller startups. Today’s news shows that the country is open to new technologies, but not without reservations.
A few days ago, we reported that the German bank Bankhaus von der Heydt, or BVDH, launched the euro stablecoin on the Stellar network. The bank claims that the token is the first product of this type issued by a banking institution. EURB, which entered into force today, was created on the Stellar network in collaboration with Bitbond, a provider of tokenization and custody technology for digital assets.