Cryptocurrency looks like the new cool! It is taking over the market and has started to diminish the monopoly which was held for a long time by printed currency. There are debit cards which supports cryptocurrency and now in a new addition Crypto has also been initiated in the E-stock bills in Germany.
The Finance Minister in Germany has introduced a draft bill which aims to place stocks issued on public or private blockchain on the same footing as stocks issued through traditional means.
“In line with the overarching principles of capital market laws, such as technological neutrality and proportionality, the bill sets up no preferential specifications for individual register techniques so that the market can develop and offer innovative solutions,” the Ministry said.
With this blockchain used technology coming to the fore, the requirement for stocks or government bonds to have a paper certificate will soon no longer apply in Germany.
“The approach proposed in the draft pragmatically combines future-oriented technology with the long-standing legal and regulatory framework for securities,” said Frank Dornseifer, the managing director of Bundesverband Alternative Investments eV (BAI) which represents the interests of the alternative investment industry in Germany.
Furthermore, the bill will provide a e-security which will replace the paper note, which will be put into the register by a supervised entity.
The register will be made central and could be operated by a central securities depositary (“CSD”) under a CSD license.