Blockchain Strategy

7 August 2020

Crypto assets, tokenization of assets, asset-backed token, token economy, blockchain-based trading of assets – even seven years after the world’s first ICO, crypto assets, tokens and related concepts („Crypto Assets“) are still in the news. However, Crypto Assets have not been able to make their way on the domestic financial markets. What is the reason for this? And what is being done to (finally) pave the way for the inevitable triumph of Crypto Assets?

In September 2019, the German Federal Government presented its blockchain strategy, which should have established Germany's position as a pioneer in crypto-regulation in the future. In particular, attention was paid to the ambition to open up the German capital market to electronic securities, so that the – currently mandatory – embodiment of securities in a document would no longer strictly apply. This would bring enormous advantages for issuers. After nine months – the corresponding paper of the Federal Ministry of Finance and Federal Ministry of Justice dates from March 2019 – a certain disillusionment seems to have replaced the (justified) euphoria. Does this digitalisation stop result in a disadvantage to German FinTechs?