Germany, the largest economy in Europe, has passed a law that will allow all-electronic securities to be recorded and traded based on blockchain technology. According to Reuters’ report, this is part of a more effective strategy by the country’s Finance Ministry to integrate existing ecosystems with blockchain.
The newly passed legislation does away with paper certificate requirements for selling securities within Germany’s financial markets. Stakeholders who pivoted towards this shift cited lengthy administrative processes that have often been a barrier.
While the paper certificate may have acquired sentimental value, the future belongs to an electronic version, according to Olaf Scholtz, Germany’s Minister of Finance. Scholtz said that,
“The paper certificate may be dear to some for nostalgic reasons, but the future belongs to its electronic version.”
Meanwhile, Germany is still making significant strides in the nascent crypto industry has released new guidelines that recognize crypto assets as financial instruments earlier this year. Its second-largest stock exchange, Börse Stuttgart, is also working to integrate security tokens to shift to virtual assets.