• A new German law allows for the distribution of $415 billion in cryptocurrency

  • Today is the first day of the implementation of a new German law that was introduced and enacted in April of this year. Germany’s Fund Allocation Law might allow thousands of institutional entities in the country to invest $415 billion in cryptocurrency. The regulation requires institutional funds to invest 20% of their holdings in cryptocurrency.

    There are 4,000 Spezialfonds (special funds) in Germany, with $1.8 trillion in assets under administration. If these funds chose to commit the entire 20% to crypto under the new regulation, it will result in a crypto inflow of almost €350 billion, or $415 billion.

    Germany is regarded as the Eurozone’s most economically powerful member, and an allocation of this magnitude could inspire other European nations to follow in their footsteps. With its compatible regulatory policies, Europe is already leading the crypto charge, and various countries are striving toward their CBDC. France and Switzerland have completed their first cross-border CBDC experiments.

    In Europe, Germany is at the forefront of the cryptocurrency revolution.

    Germany is increasingly considering a future in cryptocurrencies, with favorable crypto legislation allowing the country to increase its exposure to digital assets. Coinbase recently received the country’s first crypto custody license from BaFin, the country’s leading regulatory authority. Deutsche Borse, the country’s largest exchange operator, has previously stated that it wants to offer crypto custody to its high-net-worth clients by the end of the year, and it just purchased a majority share in digital asset management Crypto Finance AG.

    This bull market has witnessed a huge increase in institutional and government acceptance of cryptocurrency. Despite the fact that the crypto market has lost over half of its value since its peak, institutions continue to place a high value on these digital assets.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0