Having observed the development of blockchain technology from the sidelines for a couple of years, Germany is swiftly moving to assert its position in the industry and has launched a national policy in that regard.
In a document approved today by Chancellor Angela Merkel’s cabinet, the German government expressed confidence in the ability of blockchain as cutting-edge technology to introduce reforms that will benefit the country’s economy in the long run.
The national policy was not only an effort of the government since it sought the contribution of blockchain industry experts who submitted responses in line with a call to do so by German authorities.
Meanwhile, it is noteworthy that Germany’s national policy on blockchain bore good tidings for crypto industry participants who are plying their trade in the emerging securities tokenization space.
For instance, the strategy defined by the policy includes the legitimization of blockchain technology for the purpose of issuing securities.
A session dedicated to that regard reportedly identifies the benefits of tokenized securities and reads thus,
“If securities were now issued on a blockchain, the execution and settlement of securities transactions could … be carried out more cost-effectively and more quickly than has been the case to date.”
To encourage such innovations, the document goes ahead to mention that the country will introduce a “technology-neutral” draft law on digital securities by the end of 2019.
The incoming draft law, however, will only apply to digital bonds while a success upon trial will decide whether the country extends the regulation to digital shares and investment funds on the blockchain.
Interestingly, the treatment of digital securities in Germany’s national policy mirrors ongoing efforts by regulators in the country to provide the needed oversight for companies that chose to adopt the technology.