<span style="font-weight: 400;">The German authorities are <a href="https://www.bundesfinanzministerium.de/Content/DE/Gesetzestexte/Gesetze_Gesetzesvorhaben/Abteilungen/Abteilung_VII/19_Legislaturperiode/2020-08-11-einfuehrung-elektronische-wertpapiere/0-Gesetz.html" target="_blank" rel="nofollow noopener">aiming</a> to take the securities of the country to another level by using the blockchain technology. The Federal Ministry of Finance and the Federal Ministry of Justice and Consumer Protection introduced a bill on August 11, which is based on blockchain-backed digital securities.</span>

<span style="font-weight: 400;">The government while announcing this digital securities draft bill suggested that this step should be seen as a major one by the authorities towards the adoption of digital securities. Along with this, the step has to be seen as a core aspect of the blockchain strategy by the federal government.</span>
<h2><b>German authorities believe this bill will improve regulatory clarity </b></h2>
<span style="font-weight: 400;">The legislation of Germany requires all those financial instruments that are classified as securities to be secured in a document. According to the German Authorities, blockchain technology will help to guarantee liquidity while removing the paper certification. </span>

<span style="font-weight: 400;">The authorities also believe that this proposed draft bill will also work towards improving regulatory clarity. If this bill will be passed, the Financial Supervisory Authority will be the primary regulator for all blockchain-based e-stocks. Along with this, it has been mentioned that Bafin will be monitoring the complete issuance process of digitized securities. It will also maintain the decentralized ledgers under the German Banking Act.</span>
<h2><b>Global jurisdiction adopting blockchain-powered digitized securities</b></h2>
<span style="font-weight: 400;">German authorities are not alone as global jurisdictions are working towards adopting the blockchain-powered digitized securities. Back in July, a US-based firm launched Ethereum-based trading, especially for US Treasury securities. In June 2020, Japanese Tokai Tokyo Financial Holdings has also announced that it is planning to launch a digital securities exchange in the country. During this announcement, it has also been mentioned that the company is also aiming to use blockchain in the financial industry. There it will be used for issuing the digital securities.</span>
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German Authorities Aiming To Modernize Securities Using Blockchain

The German authorities are aiming to take the securities of the country to another level by using the blockchain technology.

Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.

German Authorities Aiming To Modernize Securities Using Blockchain

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