This is the main business trend of the new millennium. Virtual certificates allow a company to operate without having to maintain physical certificates. This can make the company's stock much more liquid and easy to trade. Another benefit of this process is that the company can pay lower taxes, by recording taxes on company assets and not on physical items. This can help companies reduce their costs significantly.The process of Dematerialization (DEMAT) is the move from physical paper certificates to electronic bookkeeping. Actual paper certificates are then removed and retired from circulation in exchange for electronic recording.The dematerialization of certificates was a deliberate plan by the European Central Bank. The goal was to reduce the number of physical stock certificates in circulation. Some certificates are replaced with electronic bookkeeping records. Companies can now reduce the amount of paper they use and this reduces paper waste. Users can also learn more about their investments with the help of modern technology. The transition from physical certificates to electronic bookkeeping is not a difficult one.
