Germany's Federal Ministry of Finance Puts Digital Security Adoption at Core of Blockchain Strategy
Germany’s Federal Ministry of Finance (BMF) and the Federal Ministry of Justice and Consumer Protection (BMJV) have introduced a bill that highlights the adoption of digital securities as a crucial element of Germany’s blockchain strategy.
Germany’s official blockchain strategy will feature the adoption of digital securities at its core according to a new draft bill introduced by the German policymakers at the BMF and DMJV.
As translated from the official summary, the draft bill said, “The adaptation of the legal framework to new technologies, specifically blockchain technology serves to strengthen Germany as a business location and to increase transparency, market integrity, and investor protection.”
According to the current legislation in Germany—financial instruments that are classified as securities must have a secure certified document.
The paper certificate is the point of contact for the transfer facts under property law and it bears, among other things, the traffic protection of potential buyers account. The application of blockchain technology could significantly streamline this process and help to guarantee liquidity by providing a digital replacement for paper certificates.
The draft bill put forward by the German policymakers at the BMF and BMJV also offers some clarity on the regulatory guidelines for digital securities.
Per the summary, “The Federal Financial Supervisory Authority will monitor the issuance and the maintenance of decentralized registers as new financial services in accordance with the eWpG, the KWG and the central securities depository regulation. The draft differentiates between the keeping of a central electronic securities register by a central securities depository and the keeping of registers for issuing electronic bonds made possible by distributed ledger technologies, among other things.”
The adaptation of the legal framework to new technologies, especially blockchain technology, aims to strengthen Germany as a business location and to increase transparency, market integrity and investor protection.
Meanwhile in China
As Germany updates its blockchain infrastructure, leap-frog technology is being integrated all across the globe, particularly in China that has enlisted the help of the nation’s Tech giants.
As reported by Blockchain.News, Chinese tech giant Tencent Holdings has announced that the company will be investing 500 billion yuan ($70 billion) in the next five years in emerging technologies including blockchain, artificial intelligence (AI), cloud computing, and cybersecurity.
Tencent is aiming to strengthen the development of FinTech in China, following the push of accelerating the development of blockchain as stated by the country’s President Xi Jinping.
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