The government of Germany is advancing towards a total acceptance of cryptocurrencies as it passes a law for funds to invest in them. Before now, German funds were prohibited from investing in digital currencies. However, the law was reversed today as 20 percent of the collective German fund is permitted to be invested in the industry.
Germany is a well-to-do sovereign entity in Europe. The country wields great power and exerts considerable influence over some other nations. Specialized investment funds in the country have over $2 trillion in assets under management.
With the parliamentarian asset of the law initiated in April 2021, it is estimated that over $415 billion would be pumped into the crypto market. This figure represents the allocated 20 percent which is at the discretion of asset managers to decide whether or not to invest.
The law applies to all specialized investment fund managers, pension funds, insurance companies, and all other financial institutions.
Is Germany Developing a Soft Spot for Crypto?
All eyes are currently on the European nation that only recently has taken bold strides to set up favorable policies and partnerships for the asset class. It appears Germany does have plans underway to utilize the industry.
Just last week, Germany licensed the popular crypto exchange platform Coinbase to operate within its jurisdictions. Coinbase had applied for the license in 2020 when Germany demanded crypto-related institutions to do so or risk leaving the country. The licensed platform is the first in Germany, and possibly the first of many to come.
The latest moves from Germany come at a period of pivotal importance to the cryptocurrency industry. Bitcoin, the leading crypto asset, has faced quite a rough half of the year. Now trading at a value less than half of its all-time high last month, the crypto community could use some good news.