The German government concludes that financial stability is not at risk from cryptocurrencies…
After a very, very bumpy few days for cryptocurrencies, that’s seen Bitcoin plunge fast to a two month low, a little bit of brighter news.
Whilst some legislatures around the world are taking a fairly hostile approach to crypto, Germany it now seems is countering that, with a far calmer approach. Federal government representatives have concluded that Bitcoin, and cryptocurrencies, do not offer a threat to the financial stability of the country. This follows a Parliamentary investigation, the key points of which were published yesterday in an official Parliamentary answer.
It’s further concluded that the number of crypto transactions as things stand is too low to offer any threat to the financial system.
That said, the German government does plan to monitor ongoing developments, and it’s preparing a risk analysis as to the illicit uses for crypto (with the likes of money laundering cited). That analysis will be published next year, along with an outline any plans for action at that point.
Germany does want to see a legal framework in place, and its government response notes that ‘for commercial trading in cryptocurrencies, a license from the BaFin Financial Supervisory Authority is required’.
But against the far more cautious and unfriendly approach taken by countries such as Poland in recent months, German’s conclusions seem a lot more measured.
You can read its official government post here.