Almost always, societies go well ahead of their governments. Incorporating technology and joining trends that states are just beginning to understand that they exist. The same goes for Blockchain technology and cryptocurrencies, where companies and civil organizations go well ahead of governments in adopting and developing these capabilities. As evidenced by the case of German banks.
Governments in Blockchain
The Fourth Industrial Revolution is changing everything from education, health, industry, to war and the way of socializing. And this has been well understood by companies, which compete daily to implement in their processes the new technology that the 21st century has brought.
However, governments do not have the same rhythms as the society they are trying to regulate. Well, while the world’s great companies have become very skilled in the use of artificial intelligence, automation and Blockchain. Most governments remain engaged in the type of policy and regulations that have existed since the last century.
This has presented these governments with a fundamental strategic decision. Well, the need to modernize all its government structures has become clear. So they must decide if they will allow the development of new technologies to be led by companies. Or if on the contrary, they will try to take control over this process.
While countries like China have decided that new technologies are mostly, and essentially a state problem. Other nations such as Estonia have given rise to their companies to experiment and develop with the new existing capabilities. A trend that Germany would also be trying to join.
German banks want to participate in the crypto world
And, the last Law against money laundering in Germany, tries to modernize the regulatory framework of this country. To include digital assets within German laws. And allow that country’s banks to enter the cryptocurrency business if they wish.
In this new law, German financial institutions are allowed to expand their service offer beyond traditional assets. To be able to include cryptocurrencies like Bitcoin, Ethereum or XRP. As long as they are authorized by the Federal Financial Supervision Authority of Germany (BaFin).
This has generated a true torrent of permit applications to offer cryptocurrency custodians. With more than 40 banks in Germany aspiring to get the approval of the BaFin. And far exceeding the expectations that the German government had in updating the regulatory framework.
«The market is growing faster than the Federal Ministry of Finance has predicted. This is a blessing and a curse. High demand shows that more and more companies accept blockchain technology, but it can also be seen as a result of the new legislation », commented Frank Schäffler, deputy of the Free Democratic Party.
This not only shows the enormous interest that German companies have in entering the crypto market. If not the potential of civil society to develop new technologies, when they have an appropriate regulatory framework for it. What makes this our Data of the Day here in CriptoTendencia.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.