June 2019 – “Future Technology Blockchain – Using Opportunities for Germany” – this is the title of the long-awaited key issues paper of the Union, which has now been adopted by the Federal Government. It defines the German blockchain strategy. What exactly is it all about?
Germany is often accused of oversleeping digitisation. This is to change with blockchain technology.
The Union’s goal: Germany should become a global blockchain pioneer. “We want to set the standards for digital administrative services, for digital securities, for digital identities, for digital currencies and for digital corporations,” according to the key issues paper. That’s why it also covers extensive areas, in addition to the functions in the capital market, for example
The federal government is striving for a citizen-friendly digital administration. This includes electronic patient files, blockchain-based notarial services, the allocation of social benefits or the exchange of data from different administrations via a network.
Digital identity and digital identification
This is not only about the digital identity card for people. It is also about a unique digital identification, for example, of devices and machines in business and industry. In this way, the government is already making preparations for the ever-expanding Internet of Things.
Germany’s most important export good is also taken into account. The primary concern here is the logging of data for traffic safety and to prevent manipulation. One example are speedometer readings. A blockchain-based solution is also being considered for vehicle registration documents.
E-Euro and federal chain
The most groundbreaking points are the introduction of a digital euro and the development of the “federal chain”. Behind the latter lies a state blockchain infrastructure. Transaction costs should be as low as necessary. The infrastructure should be open to European partners and compatible with the decentralised blockchain infrastructure.
As far as the E-Euro is concerned, the government wants to transfer the advantages of blockchain technology from the shadow economy to legal and serious business models. The aim is to achieve uniform regulation in the EU. From the paper: Central banks should issue crypto tokens via commercial banks that handle these like demand deposits (so-called stable coins). (…)This digital euro has no influence on monetary policy. In particular, no new money will be created. But a small part of the existing money supply will be digitised and made accessible to a global infrastructure. (…) In the case of criminal activities, for example, the e-euro can be frozen and, if necessary, devalued or confiscated. The E-Euro could be used in cross-border traffic for simple, inexpensive and fast payment.
You can read the complete key points paper for the German blockchain strategy here (German version)