Germany Legalizes Electronic Securities on the Blockchain

Photo: Coindesk

The German government cabinet passed new legislation on Wednesday allowing all-electronic securities to be recorded using blockchain technology. 

• The new law does away with the previous requirement for a paper-based certificate and comes as part of the nation's blockchain strategy blockchain, according to a Reuters report citing the German finance ministry.
• Previously, issuers and securities holders had to document transactions with a paper certificate, which added administrative burdens and was seen as an obstacle for security holders, the report says.
• “The paper certificate may be dear to some for nostalgic reasons, but the future belongs to its electronic version,” said German Finance Minister Olaf Scholz.

The ministry recommended last year that the country recognize and regulate blockchain-based securities as a legitimate form of financial instrument.

Reprinted from Coindesk, the copyright all reserved by the original author.