Germany wants to digitize securities using the blockchain

According to the authorities in Germany, the digitization of securities is one of the core aspects of the German government’s blockchain strategy.

Securities via the blockchain
The Federal Ministry of Finance (BMF) and the Federal Ministry of Justice and Consumer Protection (BMJV) presented a draft law on blockchain-based digital securities on August 11th. In the official statement, the authorities stated that the introduction of digital securities is a core aspect of the federal government’s blockchain strategy. The German federal regulators want to modernize the country’s securities using blockchain technology. Financial instruments that are classified as securities must be secured in a document in accordance with applicable German law.

Blockchain for liquidity
According to the BMF and BMJV, blockchain technology contributes to liquidity and compliance by replacing the paper certificate. According to the authorities, the proposed bill also improves the clarity of the legislation by stating that the federal financial regulator will act as a key regulator in the area of blockchain-based electronic inventories. BaFin assumes responsibility for monitoring the issue of digitized securities and maintaining decentralized general ledgers in accordance with the German Banking Act in accordance with the German Banking Act.