This might just be the boost the cryptocurrency market needs right now.
In a massive step forward for cryptocurrencies, Germany has passed a new law called the Fondsstandortgesetz, which stipulates that all specialized mutual funds can invest up to 20% of their $ 2 trillion assets in cryptocurrencies such as Bitcoin.
The Bundestag, a house in the German Bundestag, proposed the law for the first time in April, and now the bill has become law. This new law is a huge step in power as it will bring a large chunk of German finance capital into the cryptocurrency industry. According to some market experts, this law can bring in $ 415 billion in potential crypto investments.
As the UK tightens its grip on cryptocurrency, the rest of European countries, including Germany, are curiously interested. They are quick to try to form crypto regulations, and BaFin, the Federal Financial Supervisory Authority, has now licensed the CoinBase exchange for all crypto operations in the country.
Bitcoin is too important to ignore
Deutsche Bank decided to launch cryptocurrency investments this year as the country’s economists predicted the negative impact of USD inflation. The bank believes Bitcoin is too important to be ignored. Deutsche Bank also announced that it will offer custody and brokerage services to its institutional clients.
In 2021, the cryptocurrency market, more specifically Bitcoin, saw a bull run when institutional financial institutions invested billions in the industry to hedge the inflation caused by COVID-19 and the devaluation of the USD.
While Europe’s largest economy has come to terms with Bitcoin, India is seeing an increase in investments in cryptocurrencies despite a lack of regulations. India’s reserve bank has expressed its rejection of the cryptocurrency, but overall the Indian government’s stance is uncertain.
India has the largest youth population in the world and Millennials and Gen Z are showing great interest in cryptocurrency. Against this background, India’s finance minister has announced that India will not switch off all options for cryptocurrencies. People who are actively studying the cryptocurrency market suggest that this is an invitation to government-sponsored digital coins or government coins.
Gov Coins is not an India exclusive to India. China and the United States share a similar opinion. Following China’s ban on cryptocurrency, the use of its regional digital coin, the digital yuan, has increased. If the trend continues, the United States will soon adopt its government-sponsored digital dollar and other countries could pick up the pace as well.
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