The world is growing every day and it is paramount that we grow and conform to the changes that are expected to happen. When blockchain technology was first developed and launched during the launch of Bitcoin, it was earmarked to be used in the financial system. As it stands now, major nations around the globe are now deploying the technology into other sectors apart from the payments sector.
Germany has now taken a huge regarding the deployment of blockchain technology with the country’s latest announcement saying that it has legalized the use of the technology in its securities sector. According to various news outlets, the lawmakers of the European country had a sit-down and discussed extensively before the decision was reached.
Germany is exploring the potential of blockchain technology
According to the rule that was reached, the security sector of the country will now abolish the use of paper payments to make secure payments across Germany. In a recently published news by Reuters, the media house stated that the decision was reached as part of a bigger initiative to adopt the growing technology.
Also, the lawmakers have noted that with the law in motion, it will be replaced by a simple entry in the depository that a bank can maintain. This automatically means that issuers and holders will be given the power to document their various securities on a blockchain-based register.
This new technology has been seen as a move that will further enhance the financial system of Germany using electronic securities. In a press conference that was granted by Olaf Scholz, the Finance Minister of Germany after blockchain technology was legalized, he noted that this new method of securities will put Germany in the driving seat in the nearest future. Furthermore, Scholz noted that this latest technology will make so many people happy because the future is digital and the paper certificate will suit that.
The Finance Ministry will provide the legal framework for the new technology
These new digital securities will help industries majorly as they would be able to reduce the stress that their staff go through and cut a few costs in the process. Backing up the words of Olaf Scholz, the Minister of Justice, Christine Lambrecht has said that if these new laws take effect, the law will offer a clear standing on its opinion of blockchain technology. She noted that this will be done to further increase their adoption of not only blockchain technology but other emerging technologies.
Furthermore, Christine Lambrecht said that digitizing the financial market is a good thing on the part of the government, and using emerging technologies like blockchain will surely put the country in a good direction for the future. She also said that the German cabinet had the financial system of the country at heart when they made the decision, as it will be beneficial to the German financial center.
To foster this, Lambrecht says that they are looking to abolish the uncertainties that will arise from using this technology so that it would be easy for everyone in the sector to embrace the change. This new bill was introduced by the German lawmakers earlier this year with the lawmakers noting that they want to protect the German stock market.
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