Germany is transitioning to a new government after 16 years under the leadership of Chancellor Angela Merkel. The new government comes into power with many expectations and pledges, and for the digital currency industry, it could spell four years of immense growth and adoption. The Olaf Scholz-led ‘traffic light coalition’ government will lead Germany for the next four years.
The new government will support cryptocurrencies and blockchain.
Digitalization will be one of the main agendas of the German government. The new government, which brings together three political parties, has pledged to revitalize the German economy, lagging behind as the rest of Europe recovers from the pandemic. It laid out several strategies to achieve this goal in a 177-page document, and cryptocurrencies and blockchain technology will feature prominently.
It stated, “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.”
The new government will focus on enhancing regulations for the digital assets industry.
The new government will focus on enhancing regulations for the digital assets industry. It intends to work with other nations and the regional regulators to oversee the sector “to ensure holistic and risk-adequate supervision of new business models.” “We need joint European supervision for the crypto sector. We oblige crypto asset service providers to consistently identify the beneficial owners,” the coalition stated. However, the new government is cautious with digital currencies, acknowledging that they could potentially be used for illicit purposes.