Germany's Blockchain Plan

In September 2019, the German Federal Ministry of Finance published a press release outlining their plans to support the development and use of blockchain technology in Germany.

The press release states that the Ministry will invest €300 million in blockchain-related research and development over the next four years.

In addition, the press release notes that the Ministry will also focus on the development of decentralized identity systems, specifically self-sovereign identity (SSI) systems. The Ministry recognizes the potential of SSI to empower individuals and improve the efficiency of various industries and services, such as finance and healthcare.

In August 2019, the German Federal Ministry of Economic Affairs and Energy (BMWi) also published a notice outlining their blockchain strategy. The notice states that the BMWi will support the development and use of blockchain technology in Germany, with a focus on promoting the use of decentralized systems.

In particular, the BMWi will focus on the development of decentralized identity systems, including self-sovereign identity (SSI) systems. The BMWi believes that SSI has the potential to improve the efficiency of various industries and services, as well as to empower individuals by giving them control over their own personal information.

Photo Anja on Pixabay

Both Ministries also highlighted the importance of regulatory framework as a key element to support the adoption and growth of Blockchain and SSI technologies. They acknowledged that current legal frameworks may not be adequate to accommodate the specific needs of blockchain and SSI, and therefore, they will work on creating a favorable environment that allows for the growth of this technology while maintaining security, privacy, and consumer protection. Furthermore, BMWi has continued to focus on the importance of digital identities in 2021, as they are considered a crucial element for the implementation of blockchain technology. The ministry has emphasized the need to ensure data privacy and security in the implementation of digital identities, and has called for the creation of a legal framework for the use of digital identities.

Overall, the German government is taking a proactive approach to the development and implementation of blockchain technology, with a focus on creating a secure and reliable legal framework for the use of blockchain and other distributed ledger technologies in the financial sector. The goal is to promote innovation and ensure a level playing field for all market participants, while also addressing concerns about data privacy and security in the implementation of digital identities.

It seems that the German Federal Ministry of Finance and the German Federal Ministry of Economic Affairs and Energy have both recognized the potential of decentralized identity systems, specifically self-sovereign identity (SSI) systems, to improve the efficiency of various industries and services, and to empower individuals by giving them control over their own personal information. Both Ministries are investing in the development of SSI and other blockchain-related technologies and plan to create a favorable regulatory environment for the growth of this technology.