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German government explores deploying blockchain across various industries

Maya Mandzikasvili | Feb. 19, 2019
German government explores deploying blockchain across various industries

February 19, 2019, | AtoZ Markets - The German government revealed their plans to start consulting corporations and industry groups that may be interested in developing blockchain projects. Seems that country with one of the biggest economies steps into a growing competition among European nations, Asia, and the United States to become a leader in the blockchain marketplace.

The German government is meeting with various firms to cover blockchain questions

This week, as the local news agencies report, a number of companies that remained unknown were invited by the German government to provide recommendations on the digital assets.

Although it is not clear yet whether these recommendations will be turned into regulations in the future, concrete results are currently being sought. It seems that Berlin is turning into another blockchain hub having about 170 startups being involved in blockchain or distributed ledger (DLT) technologies.

Having governmental support will to make it easier for the companies that exploring the new technology to step into blockchain arena. The startup representatives emphasize that "without a legislative basis, there are big obstacles to" market entry. 

The first steps into blockchain space seem to be successful

Deutsche Börse, the largest global securities market in Germany, announced in January that it was “making significant progress” on its blockchain-based platform for lending securities. The platform is being developed in collaboration with the HQLAx Luxembourg Platform for Liquidity Management. Last December, the largest railway operator in Europe Deutsche Bahn AG partnered with the Unibright blockchain integration platform to explore the possibility of tokenization of its ecosystem. In the same period, the second largest bank in Germany, SolarisBank and the Stuttgart Exchange Group, announced jointly developing an infrastructure for the cryptocurrency exchange.

Germany joins Malta and Gibraltar in blockchain exploration journey

Governments worldwide urge caution toward cryptocurrencies that run on the blockchain technology. Germany have crafted comprehensive strategies on how to nurture blockchain startups. Some, including Britain and Singapore, provided such firms with limited freedom to experiment with the innovative blockchain applications in the financial sector. Malta and Gibraltar in their turn, have tried to lure young companies by creating laws designed to encourage the growth of the blockchain focused firms.

The German government which has launched a consultation process seeks to formulate a comprehensive blockchain strategy before the summer begins. Sources say that the tech investors and market participants from a wide range of industries, including the auto industry, the energy sector, and pharmaceutical companies have already showed their interest in collaboration with the German legislature representatives.

As Atozmarketz reported earlier, 62% of auto executives surveyed by the IBM Institute for Business Value believe that blockchain will be a disruptive force by 2021. The German auto giant Porsche has been testing blockchain applications in its vehicles since February 2018, as IBM reported. The company has been developing blockchain applications to park cars, lock and unlock vehicles, and make loaning out a company car to an employee easier. Because all transactions are recorded on a distributed ledger, car owners would be able to monitor who used their vehicle and when.

Because all transactions are recorded on a distributed ledger, car owners would be able to monitor who used their vehicle and when.

It looks like Asia and USA altogether will have a strong competitor in the blockchain arena. However, who will become the winner in this race only time will show.

Think we missed something? Let us know in the comments section below.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.