The German government plans to support cryptocurrencies and blockchain

The digitalization will be one of the authorities' main targets for 2022

05.12.2021 - 07:00

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1 min

What’s new? The new government led by Olaf Scholz, the new chancellor, has promised to revive the German economy. The “Koalitionsvertrag 2021-2025” document outlines several strategies to achieve this goal, and cryptocurrencies and blockchain technology will feature prominently in them.

The “Koalitionsvertrag 2021-2025” document

What does the document say? The authorities are cautious about digital currencies, recognizing that they may potentially be used for illegal purposes.

“We need a new dynamic in relation to the opportunities and risks from new financial innovations, crypto assets, and business models. We advocate a level playing field with equal competitive conditions within the [European Union], between traditional and innovative business models and towards large digital companies.”

What are the prospects? The government will focus on improving the regulation of the digital asset industry. It intends to collaborate with other countries and the regional regulators. This is necessary to ensure a holistic and risk-appropriate oversight of the new business models.

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