The German government cabinet passed new legislation on Wednesday allowing all-electronic securities to be recorded using blockchain technology.
- The new law does away with the previous requirement for a paper-based certificate and comes as part of the nation's blockchain strategy blockchain, according to a Reuters report citing the German finance ministry.
- Previously, 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 says.
- “The paper certificate may be dear to some for nostalgic reasons, but the future belongs to its electronic version,” said German Finance Minister Olaf Scholz.
- The ministry recommended last year that the country recognize and regulate blockchain-based securities as a legitimate form of financial instruments.