Germany has passed a law that allows digital securities to be stored on blockchain, according to information published by Reuters. Securities on blockchain The new German law removes the traditional requirement that anyone issuing or holding securities is required to document transactions with a paper certificate. In the future in Germany, it will be possible to use the blockchain network to manage securities as well Securities can now be stored in blockchain-based registries or in digital registries maintained by individual banks or depositories. German Justice Minister Christine Lambrecht praised the new regulations. According to her, they provide more legal clarity when it comes to the use of blockchain in the German securities sector. Labrecht noted that the law will increase the potential of new technologies. German Finance Minister Olaf Scholz, citing the benefits of using blockchain to reduce overheads and labor costs, said: A paper certificate may be expensive for some for nostalgic reasons, but the future belongs to its electronic version. Germany has mixed opinions While Germany has a bullish stance on blockchain-issued securities, it has a very different opinion when it comes to stablecoins issued by corporations. Scholz recently stated that governments should "do everything in their power to ensure that the currency monopoly remains in the hands of states." The comment was likely made in light of the recent STABLE bill proposed in the U.S., as well as Facebook's plans to issue Diem stablecoin. Germany is known for its strict regulations on cryptocurrency companies. These can be a high barrier to entry for smaller startups. Today's news shows that the country is opening up to new technologies, but not without reservations. A few days ago, we reported that German bank Bankhaus von der Heydt, or BVDH, launched stablecoin euros on the Stellar network. The bank claims the token is the first of its kind issued by a banking institution. EURB, which went live today, was created on the Stellar network in partnership with Bitbond, a provider of tokenization and digital asset custody technology. Tags Blockchain Germany securities stablecoins
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