Germany: a new law in the country may allow banks to sell and store Bitcoin (BTC) and other cryptocurrencies. German news agency Handelsblatt reported on November 27 that the said bill now needs to be discussed with representatives from the country's 16 states. The legislation has already been voted on by the Bundestag. Germany on track to become a "crypto-heaven" Currently, German banks and financial institutions are not allowed to offer cryptocurrencies to their customers. However, if the new law is passed by the authorities, it will completely change the status quo of the market. Reportedly, the initial draft of the bill still included a so-called "separation clause" that would require banks to use third-party custodians for cryptocurrencies or dedicated subsidiaries. The latest version of the proposed law removes this provision. This will streamline banking operations related to cryptocurrencies in practice. As Handelsblatt explains: "Starting in 2020, financial institutions will be able to offer their customers online banking virtually at the touch of a button, as well as classic securities such as stocks and bonds, and cryptocurrencies." News of the bill was met with enthusiasm from the domestic digital currency market. Sven Hildebrandt himself - head of Distributed Ledger Consulting - said: "Germany is well on its way to becoming a crypto heaven. German lawmakers are playing a pioneering role in regulating cryptocurrency. " Notably, the Association of German Banks - a large lobbying group representing more than 200 financial institutions - supports the bill, arguing that supervised financial institutions have the experience and risk mechanisms to safeguard customer assets. The association also published an article in October arguing that the European economy "needs a programmable digital euro." Attention to cryptocurrencies? However, the Bundestag recently published a statement saying that cryptocurrencies such as Bitcoin "are not real money," citing their volatility and allegedly limited use for payments. The statement came with a cautionary line about stablecoin coins, highlighting their potential to disrupt the existing monetary system. That stance was echoed this week by European Central Bank board member Benoit Coeure, who said the global stablecoin arrangement "raises potential risks across a broad policy spectrum." Tags bitcoin Germany
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