Germany: We provide a brief overview of the newly elected political parties and what can be expected from the new government. Of course, we are interested in cryptocurrencies, blockchain and regulation.
On September 26, parliamentary elections took place, ending Angela Merkel’s 16-year government. The departure of the office creates space for a new digital era, and cryptocurrencies are no exception.
Social Democratic Party of Germany (SPD)
Cryptocurrencies currently in the program winning parties do not play a significant role. The cryptocurrencies or the BTC party do not even mention it in their plans. But there is one negative mention of digital assets, such as a project from Facebook Diem or so-called stablecoins.
Even the digital euro is not mentioned in the SPD election document. However, as the digital age comes, it is highly likely that this topic will be mentioned several times.
Christian Democratic Union (CDU / CSU)
According to the union, blockchain technology has great potential and Germany could become a global innovator of blockchain. The Union plans to continue promoting blockchain-based projects. As for cryptocurrencies, those according to CDU / CSU require progressive, but responsible regulation.
Tokenized shares are a much more important focus for CDU / CSUs and are openly defended by the party. They are also worth the digital euro. They see it as a fast, easy or secure method of payment and as an alternative to cash.
Members understand the importance of blockchain technology, but want it to be under state control. The party said cryptocurrencies carry risks such as significant energy consumption, abuse by criminals or speculative treatment.
As with all innovations in the financial sector, the same rules should apply as for other financial products in terms of consumer protection, transparency and financial stability.
Free Democratic Party (FDP)
The FDP promotes in its election program friendly policy against cryptocurrencies. It argues that is in favor of creating a legal framework that is appropriate for various innovations or cryptocurrencies.
The party sees new opportunities in blockchain, especially in the energy and financial sectors. According to the party, the developing blockchain ecosystem could be one of the strongest factors in the next 10 years, which will change the way Fintech markets and industries operate.
Alternative to Germany (AfD)
Some members have spoken out in favor of cryptocurrencies, but are not on their current agenda. AfD is fundamentally against the CBDC.
The party believes that cash must be maintained for any price. The permanent preservation of cash as a basis for civil law and its anchoring in law is required.
Leftists (Die Linke)
The left wants to regulate digital payment systems more strongly. The party sees state control under threat with the advent of cryptocurrencies. According to them, cryptocurrencies provide little benefit to society and have harmful “side effects”.
Cryptocritical however, the party is open to the digital euro. “We are in favor of a digital euro that is secure and innovative, but in no way must it replace cash.”
Germany and cryptocurrencies – what’s next?
How the future government of these six parties will address the issue of cryptocurrency regulation and blockchain technology remains to be seen.
However, everyone agrees that there is a need to combat money laundering and terrorist financing. Cryptocurrencies are still perceived as non-transparent and with insufficient regulation.