Germany, the world’s fourth largest economy and the largest in Europe, could well become a crypto hub as the German government begins a new consultation process with leading industry groups and individual companies, in order to develop the potential of blockchain technology.
With no crypto framework in place, Germany’s capital city Berlin has become a burgeoning hub for startups. Currently there are around 170 startup companies that work with blockchain technology and the German government are keen to see that number grow.
Germany is an industrial powerhouse and world leaders in the auto, energy, banking, electrical and pharmaceutical sectors. According to Reuters, the German government sought out industry groups and companies to supply recommendations in order to become stakeholders in developing the blockchain process and strategy. Invitations were for recommendations to be made from this week onwards with the hope that a comprehensive blockchain strategy will be formulated before Summer 2019.
German Interest in Crypto
Partly due to the ‘Wild Wild West’ crypto world existing in Germany, i.e. no no formal crypto-centric regulatory framework in place, crypto investing in Germany is soaring. In a survey from November 2018, 28% of Germans aged between 18 to 29 showed interest in digital currencies like bitcoin
“A survey conducted by the German Consumer Centre shows a growing interest in crypto, with more than a quarter of young Germans saying they are willing to invest in cryptocurrency.
It is not surprising that a demographic whose lives have been characterized by smartphones, internet, and social media, see the attractive functionality cryptocurrency provides as an instant and decentralized means of transferring value.”
What does bode well for any potential German blockchain future is not just the interest amongst its youth. German auto giant Porsche has already been testing blockchain applications for a full year. In February 2018, Porsche started developing applications to park vehicles, unlock and vehicles cars, whilst also making loaning out a company car to an employee a simpler process.
Germany’s second-largest bank announced in December 2018 that it was jointly developing infrastructure for a cryptocurrency exchange with the Stuttgart Exchange Group.
All the ingredients are there in place to make Germany a crypto hub and a major player in the blockchain world. What could well be the deciding factor may be the legal framework in which the blockchain process is developed. Too tight such as in the UK and it may restrict development.
However, considering Germany’s industrial success over the last 70 years there is nothing to suggest that they can’t repeat that in the blockchain world.
