Germany has forecast a 0.2% GDP growth this year and are desperate to kickstart the economy.
Last month Germany announced the idea of launching Crypto shares which just adds fuel making a mockery of any crypto regulation taking place. A Future Financing Act will provide the base work for Crypto Share Regulation. So Governments can think up new digital ideas, but not come to terms on how to regulate crypto currencies? Bloody amazing if you ask me as they are truly clueless. When I read this article it smacks of desperation as the Government is trying to boost their economy any way which they can.
Startups Very High Risk
The idea of creating Crypto Shares is to create new wealth by providing start up capital like an IPO would. This would allow more money to flow into businesses/projects as it will be more accessible to the masses.
The Federal Ministers of Finance and Justice stated that the existing system is too bureaucratic and needs to be modernised opening up access to all. Germany is having to think out the box to attract new business and they feel this is away of creating new investment opportunities.
Germany has a 76% startup failure rate. That is 1 in 4 businesses that actually make it so how do you know your investment is safe?
Issuing shares that are digitalised using a blockchain, is a new way of doing things for the establishment. Will the stock market be heading in the same way moving away from how it is currently set up. I am sure many more people would invest in normal stocks and shares if it was more accessible like we have in crypto.
Allowing employees to invest within their own company by relooking at the employees saving allowance. I have no clue what they are allowed to do already so I guess this must be some tax changes making the deal sweeter than it is currently.
This would have been a good idea 4 or 5 years ago when there was no DeFi or limited staking options in Crypto. You could have sold during the Bull cycle and purchased some blue chip shares knowing your money is still being active, but crypto times have changed. the problem is Blue Chip companies will not be the target companies as these would be predominantly start ups and smaller businesses. Still these crypto shares would be full of risk as how many startups really make it. Basically statistically you have a 1 in 4 chance of seeing your investment make money and I prefer my crypto odds away from such risk as crazy as that may sound.
I see crypto shares fraught with danger and high risk and this is not protecting the public like they have been advertising for years repeatedly saying how dangerous crypto is. I honestly see this as serious high risk and would not be tempted by having crypto shares in some start up that may or may not work.