The new German law removes the traditional requirement that anyone who issues or holds securities must document transactions with a paper certificate. In the future, blockchain networks can be used to manage securities in Germany.
Securities can now be registered on blockchain technology, or in digital registries maintained by individual banks or securities depositories.
German Justice Minister Christine LAMBRECHT supported the new legislation to provide greater legal clarity in the use of blockchain in the German securities industry. She also noted that the law will strengthen the potential of new technologies. German Finance Minister Olaf SCHOLZ is confident that blockchain securities will help cut costs.