The use of new technologies such as blockchain or artificial intelligence has been in the spotlight lately and gaining more acceptance from governm
The use of new technologies such as blockchain or artificial intelligence has been in the spotlight lately and gaining more acceptance from governments around the world.
On Sunday, Sept. 26, Germans voted in parliamentary elections that marked the end of Angela Merkel’s 16 years in office. Since 2005, Germany has experienced deep crises, but also unprecedented prosperity. Merkel’s departure creates a power vacuum, but it also creates the chance for a new beginning — with the crypto sector being no exception. But what might this new beginning look like, and what are German parties planning to do to help the crypto market and new technologies like blockchain?
Cointelegraph took a look at the election manifestos, searched for keywords like “cryptocurrencies,” “blockchain” or “digital euro” and asked the parties what they think about the regulation of the crypto market.
Social Democratic Party — 206 seats won
The relationship of the center-left Social Democratic Party (SDP) to cryptocurrencies can be explained briefly: The crypto market apparently plays no role for Germany’s largest political party, which boasts the most members. And such words as “Bitcoin” or “cryptocurrencies” seem to be forgotten by the party in its “Zukunftsprogramm” (English: Manifesto for the future), the title of the SPD’s election manifesto.
Only in one place is there a negative mention of private digital currencies such as Facebook’s project Diem or so-called stablecoins. Not even the digital euro appears in the SPD’s election document.
The “sister” parties CDU and CSU, known as the “Union” — 196 seats won
Until mid-2019, the center-right parties CDU/CSU were critical regarding cryptocurrencies, after which the party launched its blockchain strategy. In the opinion of the CDU/CSU, blockchain technology has great potential, and Germany is to become a global blockchain pioneer. 90% of the measures (40 out of 44) from its blockchain strategy have already been initiated, including such milestones as the opening of German law for digital securities. The Union wants to continue to push blockchain pilot projects.
On the topic of cryptocurrencies, the CDU/CSU calls for progressive yet responsible regulation and the tightening of Know Your Customer rules. The election manifesto states:
“Acquiring real estate by paying cash should only be possible by means of banks, which must first verify the identity of the buyer and the origin of the money as part of an existing business relationship; the same applies when exchanging cash for cryptocurrency and vice versa.”
Tokenized securities, on the other hand, are much more a focus for the CDU/CSU, and they are openly advocated by the party. The digital euro as a fast, simple and secure means of payment and as an alternative to cash seems to be important for the CDU/CSU, too — but according to the party, “one has to take cautious steps.”
Alliance 90/The Greens — 118 seats won
The Greens understand the importance of blockchain technology but want to keep this innovation under state control. According to Lisa Paus, the Greens’ spokesperson for financial policy, told Cointelegraph that cryptocurrencies bring risks such as “huge energy consumption, abuse by criminals and speculative exaggerations.” “Basically, as for all innovations in the financial sector, the same rules should apply here as for other classic financial products with regard to consumer protection, transparency and financial stability,” she said.
In principle, the Greens support the plans of the European Central Bank to create its own digital euro. According to Paus, the European Union needs its own infrastructure in the financial sector to secure its sovereignty as well as the international role of the euro. She said:
“It is important to us that a digital euro guarantees data and legal security for consumers and businesses and does not threaten financial stability. Through a digital euro, we can also counteract unjustified costs caused by oligopolies. However, a digital euro does not replace classic cash, but complements it.”
Like the SPD, the Greens reject private currencies or stablecoins. The party fears an erosion of state control over currency and, accordingly, wants to take decisive action against it.
The Green party’s election manifesto also intends to completely abolish tax exemptions for cryptocurrency investments held longer than one year.
Currently, Germany only taxes crypto or precious metals, such as gold or silver, if they’re sold within the same year they were bought. So, crypto traders who use digital assets for long-term financial investment and do not often relocate them can generate tax-free profits in Germany.
According to the Greens, it should not matter how long you hold — sooner or later, the state will want its cut.
Free Democratic Party — 92 seats won
In its election manifesto, the pro-free market Free Democratic Party (FDP) advocates a…
cointelegraph.com