The German government cabinet passed new legislation today on Wednesday permitting all-electronic securities to be recorded employing blockchain technology.
The new law does away with the earlier requirement for a paper-based certificate & comes as a part of the nation’s blockchain strategy blockchain, consistent with a Reuters report citing the German finance ministry.
Earlier also, 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 adds.
“The paper certificate might also be dear to some for nostalgic reasons, but the longer-term belongs to its electronic version,” explained German minister of finance Olaf Scholz.
The ministry recommended last year that the country recognize blockchain-based securities as a legal sort of financial instruments & require them to regulate them.
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