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Why Germany Does Not Have its Own Currency (Why Germany is Bitcoin)

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Why is Germany Bitcoin? What is it? Why is it the ideal country for a global cu

Why Germany Does Not Have its Own Currency (Why Germany is Bitcoin)

Why is Germany Bitcoin? What is it? Why is it the ideal country for a global currency? According to the German Financial Times (Decrypt), due to the lack of economic stimulus measures during the COVID-19 pandemic, which has resulted in issues such as the inability to access banking services and welfare levels, the German Federal Financial Supervisory Authority (BaFin) will implement restrictive policies to prevent money laundering, terrorist financing, and other risks in the entire cryptocurrency industry. At the same time, the government hopes to strengthen regulation of blockchain technology to ensure that it can meet the growing market demand. Unlike the laws and regulations of other developing countries, Germany’s legal tender is composed of a specific set of fiat currencies. Therefore, Germany can issue a digital form of the “Euro,” a stable value unit tied to the U.S. dollar. Additionally, these fiat currencies can be in the form of paper money, physical coins, or transmitted electronically as a medium of exchange on the internet. In this sense, more and more European citizens are starting to use Bitcoin as a means of payment. What is Bitcoin? Bitcoin is a peer-to-peer network protocol that exchanges data based on blocks. To achieve this swapping mechanism, a large number of nodes are required, each with its own ledger.

Currently, most blockchain projects are exploring how to replace centralized institutions with blockchain in operating systems. However, due to the lack of guaranteed unified standards and the security features of blockchain itself, many individuals who are unwilling to share information are not even aware of their own location. To achieve user anonymity, a trustless platform needs to be established to accomplish this task and improve transparency, avoiding the occurrence of false information. Despite the many unsolved problems, Bitcoin remains an interesting and constructive solution, as it can help overcome the obstacles of traditional cash systems. (Bitcoinist)

Although Bitcoin has gained popularity and extensive use in recent years, it is still misunderstood: it is not the only claim to value—it is valued for its traceability and immutability, but it also has some issues. For example, Switzerland, after being sanctioned for lacking strict anti-money laundering regulations, had to stop processing funds in customer accounts, leading to extreme economic difficulties and a debt crisis, ultimately resulting in a sharp decline in its price. On the other hand, the UK became a major competitor by prohibiting facilitation for hackers without authorization. To worsen matters, the value of the pound has dropped by over 70%, possibly due to the US government’s demand for Russia to implement large-scale lockdowns, forcing central banks worldwide to seek control over asset flows.

Why Doesn’t Germany Have its Own Currency

Why doesn’t Germany have its own currency? According to Reuters, the country has been actively exploring the idea of issuing a Central Bank Digital Euro (CBDC) over the past year. However, in the long run, without a clear timetable to launch CBDC, there is no stable currency system, which may disrupt the entire economic activity and the country’s financial position.

If this idea were to be confirmed, further research and exploration of blockchain technology would be necessary. To understand this issue, two basic principles must first be clarified: First, blockchain can provide new value storage; Second, it can help achieve decentralization and increase efficiency; Third, “decentralization” means anyone can create, use, or manage these assets without relying on third-party intermediaries.

To address this question, we first need to understand three key concepts: Bitcoin, Ethereum, smart contracts, and their relationship with other tokens.1. Payment systems based on encryption technologies are widely used for remittance transactions worldwide, including payments in international settlements, but there are still many uncertainties.2. Funds are raised through ICOs to invest in various projects such as establishing company funds and investment plans, including loans, insurance, and stock investments.3. The application of blockchain technology makes it more efficient and easier to operate. Although some large companies have begun developing blockchain-based technology products, such as securities token issuance platform SIX and distributed ledger application MakerDAO, their work methods differ significantly. Additionally, over time, they may have to reconsider introducing a new form of currency, as “cryptographic assets” are not real currencies but tools used for exchange.4. Lack of a sovereign currency under a unified standard. According to a recent report by the European Central Bank, “There are currently four main types of sovereign currency: the euro and yen.”5. Christian Schaffler, Chairman of the Swiss Federal Reserve, stated that the Swiss central bank is seeking to establish a regulated economic model rather than designing privately supported currencies like the US. “Switzerland has a strong legal framework and governance capabilities that can promote innovation.”6. “Since 2015, Sweden has been committed to developing a digitized future.” He believes that Germany, as a member of the European Union, is now at a turning point. However, in the near future, Germany may have to reconsider introducing a new form of currency.

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