Kriptokoin.com – Germany’s finance ministry said Angela Merkel’s cabinet Wednesday passed a new clause to promote all electronic securities as a module of its broader blockchain strategy.
The law aims to facilitate rules that so far oblige issuers and securities holders to document processes with paper certificates. Finance Minister Olaf Scholz said, “A paper certificate can be expensive for some for nostalgic reasons; but the future belongs to the electronic version,” he said, adding that electronic securities reduce costs and administrative burdens.
According to the news in Reuters, a paper certificate can now be replaced by an entry in a central securities depository or a register held by special division banks. It is also possible to log into a crypto securities ledger based on blockchain technology.
Justice Minister Christine Lambrecht said the law would provide generic clarity and increase the potential of new technologies.
Blockchain technology is a kind of digital ledger where all information in a process is stored in encrypted form. It is open to all users, providing a high degree of transparency. According to the news source, the blockchain is considered to be counterfeit-proof. Because every user manages a copy of the knowledge base, it is theoretically impossible to change it unnoticed.
Bitkom IT collaboration leader Achim Berg said, “Blockchain technology has the potential to completely overturn existing procedures and fundamentally change the way all its segments work.”