A new draft law in Germany could enable banks to support the sale and storage of Bitcoin (BTC) and other cryptographic currencies until 2020.
The German news agency Handelsblatt reported on 27 November that the bill now requires the consent of the 16 federal states that have successfully passed through the Bundestag, the German federal parliament.
At present, German banks and financial institutions are prohibited from facilitating the sale of cryptographic currencies to customers. If adopted, the proposed bill will change the status quo.
While the original bill was supposed to contain a "separation clause" that would oblige banks to use external trustees in cryptovoltacks or specialised subsidiaries, the latest version of the proposed law removes this clause.
In particular, the German Bank Association - the main lobbying group representing more than 200 financial institutions - is reported to support the bill, arguing that the supervised financial institutions have the experience and risk mechanisms to protect customers' assets.
In October the Association published a document stating that the European economy "needs a programmable digital euro".
The Bundestag recently published a statement stating that cryptographic currencies such as Bitcoin "are not real money", citing their volatility and allegedly limited use for payments. This statement raised caution with regard to stable coins, highlighting their potential to disrupt the existing monetary system.
