Germany Legalizes Electronic Securities on the Blockchain
Angela Merkel's cabinet passed new legislation on Wednesday removing the requirement to have paper-based securities and allowing blockchain to be used instead.
Dec 16, 2020 at 12:14 p.m. UTCUpdated Aug 19, 2021 at 6:08 a.m. UTC
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindeskuat/JBOYEKITKBA4BFTRUHMWRXPPW4.jpg)
/arc-photo-coindeskuat/arc2-prod/public/HT2WEUWHWBFFXOMSGZOC4MCHMQ.png)
The German government cabinet passed new legislation on Wednesday allowing all-electronic securities to be recorded using blockchain technology.
- The new law does away with the previous requirement for a paper-based certificate and comes as part of the nation's blockchain strategy blockchain, according to a Reuters report citing the German finance ministry.
- Previously, issuers and securities holders had to document transactions with a paper certificate, which added administrative burdens and was seen as an obstacle for security holders, the report says.
- “The paper certificate may be dear to some for nostalgic reasons, but the future belongs to its electronic version,” said German Finance Minister Olaf Scholz.
- The ministry recommended last year that the country recognize and regulate blockchain-based securities as a legitimate form of financial instruments.
13:18
Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
05:10
Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
04:07
The first video of the year 2024
40:07
The last regression video of the year 3.67.0
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)