According to a a statement, the paper certificate will be “replaced with an admission in a very central securities repository or a register unbroken by private-sector banks.” The report speculates that this implies “a registration in a crypto securities register supported blockchain technology is now also possible.” A German organization says the law would supply legal clarity and enhance the potential of the new Blockchain technologies.
Lauding the new law is Germany’s Finance Minister Scholz who points to the cost-effectiveness of electronic securities over traditional paper-based securities. Scholz also explains the importance of moving with the times saying:
THE PAPER CERTIFICATE MAY BE DEAR TO SOME FOR NOSTALGIC REASONS, BUT THE FUTURE BELONGS TO ITS ELECTRONIC VERSION.
Meanwhile, echoing Scholz’s sentiments is the country’s Justice Minister, Christine Lambrecht. The cabinet member expresses confidence that digitization of the economic market will accelerate through the use of the blockchain. She adds that the passing of the legislation significantly “expands the innovative potential of these technologies for the German economic center.”
Cautious Technique Simultaneously, another report says Germany’s staged approach towards Crypto Currencies appears cautious, yet it “also seems to go further than other European countries that already allow crypto currencies.”
For instance, while France has for two years allowed the blockchain-based trading of securities this however only applies to “non-listed Crypto Currencies that do not use existing securities' settlement systems.”
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