This might just be the boost the cryptocurrency market needs right now.
In a massive move forward for cryptocurrency, Germany has passed a new law called the Fund Location Act that implies all specialized investment funds can invest up to 20% of their US$ 2 trillion assets in cryptocurrency such as Bitcoin.
Bundestag, a house in the German parliament, first proposed the law in April and now the bill has become the law. This new law is a great power move as it will bring a large share of Germany’s financial capital into the cryptocurrency industry. According to some market experts, this law can bring US$415 billion in potential crypto investments.
While the UK is tightening its grip on cryptocurrency, the rest of the European countries, including Germany, is curiously interested. They’re quickly trying to form crypto regulations and BaFin, the Federal Financial Supervisory Authority of Germany has now licensed CoinBase exchange for all the crypto operations in the country.
Bitcoin is Too Important to Ignore
Deutsche Bank decided to adopt cryptocurrency assets this year as the country’s economists predicted the adverse effects of USD’s inflation. The bank believes that Bitcoin is too important to be ignored. Deutsche Bank also announced that it will offer custody and brokerage services to its institutional clients.
In 2021, the cryptocurrency market, Bitcoin to be specific, has seen a bull run as institutional finance invested billions into the industry to hedge the inflation caused by COVID-19 and the debasement of the USD.
While Europe’s largest economy is coming to terms with Bitcoin, India, despite a lack of regulations is seeing a surge in cryptocurrency investments. India’s reserve bank has vocalized its disagreement with cryptocurrency but overall, the Indian government’s stance is uncertain.
India has the largest youth population in the world and Millennials and Gen Z is showing keen interest in cryptocurrency. With this in mind, India’s finance minister has announced that India will not shut down all options for cryptocurrencies. People who actively study the cryptocurrency market suggest that this is an invitation for government-backed digital coins or Gov Coins.
Gov Coins is not an India exclusive to India. China and the USA also share a similar opinion. After China’s ban on cryptocurrency, the use of its regional digital coin, the digital Yuan, has surged. If the trend continues, United States will soon launch its government-backed digital dollar and other countries might pick up the pace too.
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