From :: https://cbw.cryptoassetrating.com/Article/1031/crypto-business-world-germany-rushing-to-pass-a-crypto-bill-to-tokenize-bonds
Germany Rushing to Pass a Crypto Bill to Tokenize Bonds
By Rating Crypto Asset: Wed, 24 Jul 2019

Germany
is moving towards embracing crypto, blockchain and tokenization with
discussions on-going in Berlin where they plan to create an enforceable
legal framework for the issuance of bonds on the blockchain.
“We
consider it of paramount importance that we advance blockchain
technology for Germany in 2019,” said Thomas Heilmann, Blockchain
spokesman for the CDU/CSU parliamentary group. CDU and CSU being the
current coalition running Germany.
They
plan to introduce a digital value right where bonds can be issued as
tokens with such rights enforceable by what they call notaries in
Germany. Unlike in US, they are of considerable more standing and can be
seen as sort of half-way between a barrister or attorney and a judge.
“We’re
think about integrating the German notary system into the settlement,”
Heilmann says. So if a token issuer promises returns through annual
interest payments or otherwise and fails to deliver, investors can take
enforcement action through effectively the court system.
The
notary would then have many options depending on the situation same as
in ordinary civil proceedings, including ordering the bank to transfer
funds to investors if the issuer has any in the bank account, or order
house/property or business sales and so on.
According
to a leading German paper, industry representatives are embracing the
CDU plan. “From an investor’s point of view, the idea is good, because
claims can thus be enforced in the case of a dispute,” says Florian Glatz, President of the Blockchain Federal Association.
There’s
some discussion on whether such bonds can only be issued by
intermediaries, like banks or stock exchanges. “That would take the
blockchain idea ad absurdum and introduce central players again,” says
Glatz.
However,
there appears to be a consensus across parties that blockchain finance
should be embraced, with the opposition pushing the government to hurry
up.
“The
federal government has finally woken up,” says Frank Schäffler,
blockchain expert of the FDP which is currently in opposition. He adds:
“Now
it has to be fast. Crypto issuers and investors seek a regulated
financial center that is internationally presentable for their business.
After
bonds, stocks must also come to blockchain. Other countries are already
ahead. For example, Liechtenstein submitted the draft of a Digital Law
on Value Added Rights in 2018. And Malta is promoting itself as a crypto
hub with similar initiatives.”
There
are apparently 174 blockchain start-ups in Germany, 84 of them in
Berlin. They seemingly missed the ICO wave in 2017, with Germany now
looking to follow France in embracing this industry.
That
could mean the entire European market, which is about as big as USA’s
economy, might now become a very favorable environment for the crypto
and blockchain industry.
They
have one distinguishment among major economies. Boerse Stuttgart, the
second biggest stock exchange in Germany, is still the only one of its
size to offer somewhat direct crypto trading through a subsidiary.
On the traditional stock exchange, they’re now listing a number of crypto Exchange Traded Notes (ETNs).
Other
stock exchanges have also announced plans to launch crypto trading
later this year in different forms, with a potential unique contribution
by Germany to this space being its industry.
From
smart cars to electricity grids, some German industry has been testing
blockchain tech one way or another starting as far back as 2016.
While Berlin especially stands out for its underground tech culture, with bitcoin nodes there close to overtaking even USA.
Their
elected have arguably been somewhat behind until recently, but that
could be to their benefit if they have learned from others’ mistakes as
competition now heats up across all major jurisdictions.
Source: Trustnodes.com
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