On August 11, Germany Finance Ministry has released a big announcement saying they are currently drafting a bill that will cover tokenized securities as part of Germany’s blockchain policy. The bill is looking to change the current requirments for holding different financial instruments. If this bill passes, it will include digital signatures for tokenized currencies. As a result, the paper requirement needed for keeping track of tens of paper registries for each transaction made by an individual while buying a cryptocurrency will become obsolete.
Reasons Why Germany Is Looking To Evolve Its Financial Securities Bill:
- It will reduce the cost of physical documentation, transportation, and compliance. By going digital, Germany will be looking to create a solid foundation for the Digital Market of the future.
- New Financial Bill will relieve the legal costs and will make buying cryptocurrencies a lot easier and faster. Being Regulated will also gain confidence in citizens concerning to blockchain and crypto-currencies.
- Due to this Bill, there will be a huge wave coming for DeFi projects backed by the German Financial Institution. This is indeed a monumental step as it opens the gate for all sorts of digital products like decentralized insurance, DeFi projects, public spaced tokens, and much more.
German Financial Institutions have been closely monitoring cryptocurrencies for a long time now. Germany is betting big on blockchains and cryptocurrencies, and this has shut voices of people who had doubts about government not paying attention to cryptocurrencies.