Institutional investment funds in Germany are very open to the approval of a new law that will lead to the possibility of invest in cryptocurrencies starting July 1, 2021. More than 4,000 Spezialfonds, which are in charge of managing the investments of institutional clients in the country, will be able to invest up to 20% of your portfolio in cryptocurrencies. This is what the new German legislation establishes. In addition, financial institutions, pension funds and insurance companies are also included.
The German parliament approved new legislation last week, after Parliament passed this legislation to the German federal authorities so that the law can be approved as soon as possible at the national level.
Many of these investment funds have stated that it is a great opportunity for the positioning of cryptocurrencies as a form of investment; And among all the financial funds of the German country, they are managed 1.8 trillion dollars.
Although there is no equivalence with respect to these investment funds in the United States; These offer a certain type of flexibility, diversification and liquidity; and also few limitations regarding the requirements requested of investors for loans and financing.
Cryptocurrencies accompany the country’s economic recovery
The German investment funds thus join a global trend linked to this type of institutions to be part of the world of cryptocurrencies. Around the entire planet, banks, other financial entities and companies from various industries have opted for Bitcoin adoption and cryptocurrencies. This adoption has occurred for different purposes, as well as store of value as a speculative asset or as a payment method.
On the other hand, it is also worth highlighting the fact that Germany is one of the strongest economies in the European Union and throughout the world. For this reason, it has become a reference for many other countries around the world.
It is also important to emphasize that last March, unemployment rates decreased significantly in Germany, which responds to a clear economic recovery in Germany. The entry of investment funds into cryptocurrencies last July could contribute greatly to achieving a economic boost on the thousands of institutions that are responsible for supporting investments in the German country, especially if the bull market continues.
In this sense, the main German bank, the Deutsche Bank, could launch a new multi-service platform based on cryptocurrencies. In this way it would allow the purchase and sale of these, in addition to the payment of taxes; and also the issuance of loans, among other services
The end of the use of cash
Likewise, the bank itself has predicted that Cash could stop being used in the next five years in Germany. The rise of cryptocurrencies, and the upcoming arrival of CBDCs over the next few years in different countries around the world; They could cause big changes on the planet.
One of them is that some countries like Germany, which are firmly committed to the adoption of digital currencies. These are called to be the future after they have had a great boost as a result of the coronavirus health crisis. The pandemic has caused major changes globally, including less use of cash. More and more people are betting on alternative payment systems to cash.
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