Monday, 03 August, 2020

Blockchain Bundesverband: German government relies on Blockchain

Yesterday we published our assessment of the results of the coalition negotiations for the Blockchain and Crypto Currencies block of topics. The Blockchain Bundesverband also commented on the results yesterday and issued the following press release:

Berlin – in the current coalition agreement between CDU/CSU and SPD the Distributed Ledger Technology plays an important role, but there is still more demand. Basically, however, the document emphasizes: The German government welcomes the blockchain industry and invites it to become active in Germany.

Here are the results and evaluations of the Bitcoin evolution

„In order to tap the potential of blockchain technology and prevent Bitcoin evolution scam abuse opportunities, the German government wants to „develop a comprehensive blockchain strategy“ and „advocate an appropriate legal framework for trading in Bitcoin evolution crypto currencies and tokens at European and international level“.

Comment: This is an important step that should be implemented quickly. The lack of a legal framework for ICOs and other token launches continues to be a major obstacle for many start-ups in Germany. This technology will only be able to gain a foothold in Europe if it is quickly remedied at EU level. The Finance Committee of the Blockchain Bundesverband has analysed the regulatory legal situation with regard to blockchain tokens in general and with regard to the much discussed token sales („Initial Coin Offerings“ or „ICO“) in particular and will publish a comprehensive statement on this shortly.

The German research budget is larger than ever

Furthermore, the German government would like to „test innovative technologies such as distributed ledgers (blockchain)“ in order to examine their use for government work. In such pilot projects, information should be collected „so that a legal framework can be created on the basis of these experiences“.

Assessment: Pilot projects are essential to use appropriate standards for the use of a decentralised database. Special focus must be placed on the fixed points of each modern transaction: On the one hand, the interfaces to public databases with blockchain must be presented and, on the other hand, we need legal standards for digital and business-capable databases.
Identities on the Blockchain. The Pilot Projects Committee of the Blockchain Federal Association has collected examples of such projects and is happy to support the public authorities in their implementation.

In addition, „research priorities“ are to focus on „artificial intelligence, data science, digital humanities and blockchain technology, robotics and quantum computing“ and „continue and expand the existing technology programmes for application-oriented research to promote digital cutting-edge technologies such as quantum computing, robotics, autonomous systems, augmented reality (3D virtualisation), blockchain, visible light communication and smart homes“.

Comment: Especially in combination with autonomous systems, artificial intelligence and smart homes, generously financed research on blockchain technology is a decisive building block for the future of Germany as a business location.

What is missing? In principle, sandboxing possibilities must be created for the dynamic blockchain area in particular so that new ideas can be tested without artificial obstacles. Only the experiences that emerge can point to the need for future regulation. Without free space, new ideas are worked on with old tools. The results then benefit neither the innovators nor the regulators.

The Blockchain Bundesverband thus shares BTC-ECHO’s fundamentally positive view with regard to the coalition agreement, but also points out where the agreed points do not go far enough. It will certainly also be the task of the Federal Association formed last year to continue to put the topic on the agenda of the Federal Government as a representative of the interests of the German blockchain scene and to participate in the concrete design of the blockchain strategy.