Germany’s cabinet has approved legislation that authorises the use of blockchain technology in transacting securities.
The law relaxes requirements that all transactions be recorded on paper, according to the German Ministry of Finance.
The paper form is replaced by an entry either in a register kept by a central securities depository or a custodian bank (central register security paper) or in decentralised, so-called crypto securities register based on blockchain technology (crypto securities). The new law now makes the issuance of securities purely electronically a possibility.
The legislation, which was introduced as a bill on 11 August 2020, will bring the government’s blockchain strategy closer to fulfilment.