Key takeaways:
- The Principality of Liechtenstein may accept Bitcoin in exchange for government services, following the lead of several cantons in the neighboring Swiss nation.
- According to the proposals, every cryptocurrency obtained will be instantly converted into Swiss francs, according to Prime Minister Daniel Risch.
According to a report from the German News Publication Handelsblatt published on Sunday, Liechtenstein intends to accept bitcoin (BTC) as payment for public services.
Prime Minister Daniel Risch indicated that Liechtenstein aims to accept Bitcoin (BTC) as payment for public services in an interview with the German News Publication Handelsblatt. The future will bring a Bitcoin payment option, according to Risch, who also serves as the finance minister of Liechtenstein.
Risch stated that the objective is to take Bitcoin deposits and promptly exchange them for the Swiss franc, which is the currency of Liechtenstein. However, there is no set timetable for deploying this payment option.
The Swiss towns of Zug and Lugano have adopted a similar strategy, allowing residents to use Bitcoin to pay for some taxes and municipal services. Risch is allegedly also receptive to future public fund investments in Bitcoin.
With 2.23 billion Swiss francs ($2.51 billion) in state reserves, the principality saves three times its 900 million francs ($1 billion) yearly budget each year and invests the extra cash in capital markets. According to the report, some of those assets might be used to buy the biggest cryptocurrency in the world. Risch said:
“Crypto like bitcoin are currently still too risky. But this assessment can change,”
Due to its favorable regulatory climate, which has positioned it as a top destination for blockchain and cryptocurrency enterprises, Liechtenstein has made news previously.
The Blockchain Act, which established a regulatory framework for blockchain and cryptocurrency firms, was passed by Liechtenstein in 2019. The regulation clarifies how assets based on blockchain technology should be classified and regulated while also acknowledging the particular characteristics of the technology.
The Principality of Liechtenstein may accept Bitcoin in exchange for government services, following the lead of several cantons in the neighboring Swiss nation. These banks are willing to engage with Bitcoin enterprises.
Furthermore, Liechtenstein is a component of the Zug- and Zurich-area Crypto Valley, Switzerland’s center for blockchain and cryptocurrency innovation.
The Argentinean central bank recently announced it would no longer accept cryptocurrencies through payment apps. With the modification, banking organizations and payment fintech businesses are subject to the same regulations nationwide.
