While the German-speaking Bitcoin and Blockchain community is growing steadily, the authorities are struggling with adaptation. The digital priority list states that there are numerous requirements in the field of digitisation.

But the Bitcoin loophole mills are grinding slowly

On 29 August, the Liechtenstein government published a 179-page consultation report to create a legal basis for Bitcoin loophole regulation. The aim is to give investors, entrepreneurs and businesses more legal certainty when dealing with block chains. An important step towards adaptation and a major leap forward for Liechtenstein in terms of technical innovation. And Germany? Orders its priorities.

For example, a study conducted in cooperation between the F.A.Z. Institute and Sopra Steria Consulting shows that seven percent of the federal, state and local administrations surveyed provide a budget for blockchain projects. Here it is above all an increase in efficiency that could oil the slow mills of the administrative apparatus:

“The technology is particularly suitable for the federal, state and local governments to complete complex processes with many simultaneously involved parties more quickly. State benefits, such as unemployment benefits and BAföG, could be paid out without each transaction having to physically pass through many hands until it is legitimized.

Lack of skilled workers calls for automation

To this end, it is of interest to automate more activities, especially in view of the shortage of skilled workers. Two percent of the administrations surveyed had therefore “already” invested in AI solutions. Nevertheless, the respondents are optimistic about the future. As the study continues to show, this share is expected to rise to 16 percent by 2020: Specific fields of application are the analysis, categorization and distribution of citizen enquiries and applications.

According to the report, considerable progress is also expected to be made on mobile devices in order to optimize processes:

“Mobile devices are also changing the work of administrative staff. One example of this is the ‘Mobile Workplace’ pilot operation launched by the Rhineland-Palatinate police in October 2017. Here, the connection of mobile terminals offers many advantages, for example by allowing data on traffic accidents or criminal charges to be entered directly on site or data from the residents’ registration system to be retrieved and checked.”

Germany and the missed revolution

Furthermore, the administrations wanted to finally manage to implement the e-file. For “paperless file management”, 38 percent of the respondents want to use “a considerable share of the budget” by 2020. In fact, 57 percent of administrative decision-makers are already in the implementation phase with the electronic file.

However, Germany needs a solid legal basis before the blockchain technology can be adapted. And it will probably be some time before that comes. The topic of “blockchain” is included in the coalition agreement. But BaFin and the government are still struggling at the moment. The “world” hit the nail on the head already in February: “Germany misses already again an Internet revolution”.