One of the major problems associated with cryptocurrencies was their formal legal status. For a very long time, the almost clandestine nature of Bitcoin and other crypto lent them an air or speculation and mischief.You can think of them as elements, which exist, but no one in the system formally wants to recognize them. When it comes to accepting cryptocurrencies as official, you would want one of the major economic superpowers to do so.
The US stance on crypto is ambivalent and moves from one end of the spectrum to the next pretty soon. China, on the other hand, completely banned any dealings in crypto in 2017. Given this background, Germany’s recent announcement on cryptocurrencies is very important.
Germany and the new Cryptocurrency Regulations: A Brief History
Starting 1 January 2020, Germany allowed national banks to deal in cryptocurrencies. This meant that banks could sell, store, invest, trade and transact in cryptocurrencies like Bitcoin and Litecoin. This formal status, which has been given to cryptocurrencies, is being considered as a watershed moment for this ecosystem.
The January ruling came about as an offshoot of the new European Union Law on Anti-Money Laundering. The new law came into force on December 12, 2019. This set in motion a change the German Banking Act.
Even before the formal legislation, Germany had accorded a respectable position to cryptocurrencies. Germany boasts of some of the biggest cryptocurrency exchanges within its borders. In addition to Switzerland, cryptocurrency traders speak very highly of Germany as a country, which is investing in new technologies.
What Germany’s new law means for the future of Cryptocurrencies
As we speak, the world is going through some drastic changes. The Coronavirus Pandemic has shocked the global financial, social and other aspects of live. Millions of people are expected to lose their lives. The global currency ‘dollar’ is crashing on the low demand of oil in the coming months.
However, financial analysts and experts point out that the cryptocurrency ecosystem has remained relatively unscathed. Bitcoin continues to trade above the $7500 mark comfortably. This is going to increase right through the year.
A strong appreciation for Bitcoin is going to take place in May when the ‘Halving’ takes place. In other words, we are looking at a realistic model for an alternative global currency. The foundation of Bitcoin states that it is free from influences that affect its valuation.
The Coronavirus Pandemic is a great opportunity to put this theory to test. Following an initial fall, Bitcoin bounced back strong. With confidence from national governments like Germany, this is only going to improve.
Should you invest in Cryptocurrencies as an asset in Germany?
As soon as the new law was passed, experts and analysts alike heralded it. It should be pointed out that when Germany declared about the new law, it attracted the attention of not only exchanges, but also businesses, who operate in this ecosystem.
We are talking about companies operating in Blockchain technology, Crypto Exchanges, Trading Platforms and Mining Operations. This is not only going to add billions of dollars to national revenue, but also lead to employment generation and technological innovation.
By using the german app, everyone can hope to be a part of the crypto ecosystem. Germany boasts of some of the world’s most tech advanced trading platforms. By investing a small sum of money and letting the robot or the software do the rest, you can easily win close to a thousand euros every week!
Following Germany’s favourable position, many other European countries are likely to follow. This is an excellent opportunity for the entire world to create and agree on a single global unified currency. Cryptocurrencies like Bitcoins might just be the future of global finance.