The German legislators plan country’s securities modernization with the help of blockchain technology.
Germany’s Federal Ministry of Finance (BMF) and the Federal Ministry of Justice and Consumer Protection (BMJV) presented draft law on digital stocks on the basis of blockchain on August 11.
Official statement says that the enactment of the law on digital securities is one of the principal elements of federal blockchain related policy.
Current German legislation policy supposes that all financial tools having stocks as definition should be confirmed in a paper way.
Blockchain technology would thus help guarantee liquidity and compliance by providing a replacement for the paper certificate, the According to BMF and BMJV the use of blockcain technology will help to warrant papers security and replaces paper documents.
BaFin the agency will deal with the monitoring of digitalized stocks production and maintaining decentralized ledgers based on the German Banking Act requirements.
Some global companies have been already dealing with blockchain based stocks. At the beginning of July 2020, the US company has implemented Ethereum-based trading for a new stock consisting mainly of the stocks from the U.S. Treasury securities.
In June, Tokai Tokyo Financial Holdings, a chief Japanese traditional financial organization mentioned about the plans to start digital stock exchange in Japan. The official statement mentioned the plans of the company to use blockchain technology in the financial sphere for digital stocks production.