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MIL OSI Translation. Region: Germany / Deutschland –

Source: Federal Ministry of Finance International / Financial Market

Federal government is driving digitalization of the financial center

The Federal Cabinet today approved the draft law for the introduction of electronic securities, presented jointly by the Federal Ministry of Finance and the Federal Ministry of Justice and Consumer Protection. With electronic securities, we are driving the digitization of the financial center Germany. The paper certificate may be dear to some for nostalgic reasons, but the future belongs to its electronic version. Electronic securities reduce costs and administrative work. The bill brings an important digital innovation for the German capital market. Federal Finance Minister Olaf Scholz The digitization of the financial market is already well advanced and is being accelerated even further through the use of technologies such as blockchain. Today’s cabinet decision significantly expands the innovative potential of these technologies for the German financial center. At the same time, we create legal certainty in an area that is characterized by constant change due to technological innovations. Federal Minister of Justice Christine LambrechtThe draft law opens up German law for electronic securities. The currently mandatory documentary embodiment of securities in paper form should no longer apply without restriction. In future, it should also be possible to issue securities purely electronically. The paper form is replaced by an entry either in a register maintained by a central securities depository or a custodian bank (central register security paper) or in decentralized, so-called crypto securities register based on blockchain technology (crypto securities). With the introduction of digital securities, one of the central requirements of Federal government’s blockchain strategy fulfilled. The adaptation of the existing legal framework for securities to innovative technologies, in particular blockchain technology, serves to strengthen Germany as a business location and increase transparency, market integrity and investor protection. The regulations are deliberately formulated in a technology-neutral manner in order to be able to do justice to further technological developments.


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