Latest German Bill Encourages Crypto Adoption: Bundesrat

The latest German bill is expected to encourage massive crypto adoption as per the latest reports we have in our latest crypto news. Probably German banks will have the opportunity from 2020 onwards to provide sale and custody services for cryptocurrencies. This is a consequence of a bill vote that was upheld today at the Bundesrat, a national representative body similar to the U.S. Senate.

This law is a direct consequence of the EU’s fourth money laundering directive, as reported by Handelsblatt. As Germany tries to comply with the new directive, the law is clarifying the cryptocurrency status in the European country and gives permission to banks to offer services related to cryptocurrency to its clients.

There was a “separation clause” in the initial draft of the bill, that had the role of preventing financial providers to act as custodians and selling Bitcoin and other cryptos because they need to be separate entities. This clause was not contained in the version signed by the Bundesrat.

A definition for a “crypto-asset” was created by the German Bundesrat, defining it as “a digital representation of value that has not been issued by any central bank or public agency,” but is “accepted as a means of exchange and payment or for investment purposes.”

The latest German bill created by the German Bundesrat represents an important distinction from the now present concept in the German law of e-money. But the law does not distinguish between security and utility tokens, having the lawmakers saying that they will be evaluated on a case-by-case basis. The law passed in the Bundesrat on Friday, leaving few barriers for its adoption in 2020. The Federal Chancellor and President will need to ratify the bill, which is generally considered a formality.

As we reported previously, More than 200 German Banks are calling for digital euro with smart contract functionalities backed by the European Union and they expect it to happen soon. In today’s cryptocurrency news, we find out more about their demands. The association of German Banks, which is basically a collective of private banks that coordinate as the principal lobbyists for Germany’s finance industry and counts national mainstays like Deutsche Bank, demanded for the development of a programmable euro or a digital euro because it can lead to innovation with great potential and the next stage of the digital evolution.