Germany is a powerful country and has strong economy, ranked fourth in the world by its economic output. An order from government financial system allows buying goods and service with digital currency without taxation. This creates conducive environment to set up new businesses related to cryptocurrency.
In a press release dated May 13th, German state North Rhine-Westphalia (NRW) announced plans to launch European Blockchain Institute to Research Blockchain Technology. Blockchain technology will enable the existence of cryptocurrency, a digital medium of exchange with encrypted technique. This will aid in peer review, elections, and other types of democratic decision-making, audit trails and personal identification.
The European Blockchain Institute will be located in the city of Dortmund in the end of the year, in Fraunhofer Institute for Material Flow and Logistics (IML), this was said by Andreas Pinkwart, the NRW Economic Minister.
Pinkwart addressed the concerns over the amount of energy consumed by mining bitcoin (BTC) by the Blockchain critics. Bitcoin mining creates new bitcoins by making new parts of the Blockchain but it’s possible to buy them. Mining includes peer to peer net work without the need for intermediaries.
The network uses encryption technique to control the creation of money units and verify the transfer of funds. Every single transaction is recorded in a public list called the blockchain. Miners are only rewarded 12.5 Bitcoins for every new part of the coin. She praised the importance of Blockchain technology that it’s safe, decentralized, less use of energy and cheaper.
According to the press release, the USA has a developed technological structure and economy relative to Europe which is behind the USA in blockchain advancement. Due to its high economy, cryptocurrency is widely used to conduct businesses. It is legal to use Bitcoin in the US, and payments are subject to the same taxes and reporting requirements as any other currency.
Reported by Coin telegraph, Ryan Zagone, Ripple’s Director of Regulatory Relations, on May 14th at the 2019 consensus conference that technology in cryptocurrency and Blockchain needs to be a national issue to deal with.
He said that Washington around 5G is dominated by foreign firms of crypto and Blockchain technology expertise. They should put it as part of future infrastructure because it is important for national security and the economic perspective in which the U.S is leading.
This calls attention to the growth of cryptocurrency and Blockchain industry in US and Europe to keep the economy of the country high. This move has made German not to lack behind but to develop European Blockchain Institute that will make learning transparent, easy and efficient by use of Blockchain technology.