German Finance Ministry proposes blockchain-based solution to digitize securities in draft bill

The finance ministry of Germany, Federal Ministry of Finance (BMF), released a draft bill on the introduction of electronic securities (eWpG) on Tuesday, and it includes a blockchain solution to digitize securities. 

The bill would revamp both the German securities law and the corresponding supervisory law with a focus on blockchain strategy, according to a press release published by BMF. 

“With the establishment of digital securities, one of the central components of the federal government’s blockchain strategy and the joint key issues paper of the BMF and the Federal Ministry of Justice and Consumer Protection (BMJV) on electronic securities (eWpG) will be implemented,” the release said. 

Currently, the law dictates that financial instruments classified as securities under civil law “must be securitized in a document.” This document, a paper certificate, currently acts as the source of all facts relating to each security and incorporates details on buyers’ accounts, according to

Read More