Liechtenstein introduces blockchain technology into the economy - Liechtenstein Blockchain Act is the next stage in the opening of governments to the digital revolution

There are many indications that Liechtenstein will become another country whose government will agree to regulate the circulation of digital money. For the New Year means the entry into force of the new regulations (named Liechtenstein Blockchain Act) related to technology blockchain.

Based on this, companies will be able to tokenize their rights and assets, and thus the country's economy will increasingly turn to tokenization.

The Liechtenstein Blockchain Act

Already in January Liechtenstein will enter into force the Act on the provision of services regarding tokens and TT (Liechtenstein Blockchain Act) regulating the tokenization of various types of assets and rights in accordance with Token Container Model.

The government of this country is therefore well aware that the digital revolution has become inevitable.

Generally speaking, it can be concluded that the Liechtenstein Blockchain Act will allow the transfer of rights and assets in paper form to digital reality, making them more easily negotiable. Most of the rules relating to law and assets will remain virtually unchanged - only some of them have been modified to suit the specificity of the digital tokenization process.

Also check: Tokenization - what is it?

What changes will the Liechtenstein Blockchain Act bring?

One of the key elements of the blockchain law introduced by Liechtenstein is the Token Container Model, in which the token is treated as a container, allowing the acquisition of various types of rights.

He can also represent material and monetary goods and remain empty.

This solution allows you to clearly distinguish between law and technology, as well as better understand the tokenization process. The Liechtenstein Blockchain Act also provides that some new service providers starting their adventure with blockchain technology are required to regulate this activity.

At the same time, by establishing physical verifier, the Act contributes to the integration of the physical world with the digital world.

His task is to identify the token holder who has the obligation to enforce the rights and obligations under contract. The verifier in question is also responsible for the proper conduct of business processes and the synchronization of the physical and digital world.

Licenses for companies related to tokenization they will be paid, but these fees will not be excessive.

In addition, the fact that the Liechtenstein Blockchain Act clearly defines the entire registration procedure, as well as the growing prevalence of smart contracts in this country will cause tokenization costs to become ever lower.