Digital transformation is taking the world by storm. As the global economies tread towards digitalization, blockchain technology is fast becoming a preferred mode for financial transactions, and cryptocurrencies are gaining wider legal acceptance.
European countries are also adopting blockchain more comprehensively; now, Germany has leaped the same by legalizing digitized securities.
Germany Passes Law for Digital Certificates
German cabinet just paved the way to allow trading over the blockchain as it legalizes digitized securities. The new law given nod by Chancellor Angela Merkle’s team, diminishes the need to use papers securities, which means the users do not need to use physical certificates to sell their securities and bonds. The industry experts are apparently considering it as a step towards blockchain trading in Germany.
Reuters first reported that Berlin allowed the use of electronic securities as the finance ministry moves towards the digitization of securities as per its blockchain roadmap. With this, the issuers and holders would not need to hold a paper certificate for their transactions. The Finance Minister of Germany Olaf Scholz noted that the paper certificate might be dear to some for nostalgic reasons, but the future belongs to its electronic version,”
He highlighted that the electronic version of the securities substantially makes the processes better and reduces additional costs. The users can replace their paper securities by applying for an entry in the central securities depository. There is also a chance of using a crypto securities register over a blockchain. As Blockchain technology is widely considered safe and secure of being forged in any way, it has the capability to transform the current processes and procedures and enhance the way businesses are done.
Justice Minister Christine Lambrecht also said that the new legislation provides more clarity and insight into digital technologies and how their implementation can help enhance operational efficiency.
Germany is one of the most prominent countries to adopt and call out for digital finance and is making efforts to adopt security tokens. Most recently, Bankhaus, a leading bank, launched stablecoin. Borse Stuttgart, a leading German exchange, is introducing security tokens for its clients as a broader vision to allow the adoption of digital assets.
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