Liechtenstein has announced plans to accept Bitcoin as a payment option for government services. This move is in line with Liechtenstein’s ongoing efforts to embrace cryptocurrencies and blockchain technology. Prime Minister Daniel Risch, who also serves as the finance minister, stated that the country is working on a payment option with Bitcoin, but did not give a timeframe for when this will be implemented.
Liechtenstein set to adopt cryptocurrencies for payments
The country is expected to accept deposits in Bitcoin, which would then be immediately converted into Swiss francs to avoid the currency’s volatility.
Liechtenstein has been actively trying to establish itself as a cryptocurrency hub in Europe, and the Liechtenstein Blockchain Act passed in 2019, provides clear regulations for cryptocurrencies.
Since then, several crypto-focused businesses have set up operations in the country, and this move is expected to attract more crypto firms to the region.
Although Liechtenstein is not a member of the EU, it is part of the European Economic Area, where the EU’s Markets in Crypto-Assets (MiCA) regulation could apply. This regulatory clarity could be a significant draw for crypto firms looking to operate in the region.
The country is still cautious about crypto investments
Despite its efforts to embrace cryptocurrencies, the country remains cautious about investing its multibillion-dollar treasury in Bitcoin or other cryptocurrencies.
Risch stated that Bitcoin and other cryptos are currently too risky for the country’s treasury. However, he did not rule out the possibility that the country’s position may change in the future.
This move by Liechtenstein to accept Bitcoin for government services follows in the footsteps of the nearby Swiss communities of Zug and Lugano, which also accept Bitcoin for taxes and public services.
With retailers like McDonald’s also accepting BTC, these communities have become known for their acceptance of cryptocurrencies. This move by Liechtenstein could be seen as part of a growing trend of smaller nations embracing cryptocurrencies and blockchain technology.
Liechtenstein’s decision to accept Bitcoin for government services is a significant step towards the wider adoption of cryptocurrencies. As more countries embrace crypto and establish clear regulatory frameworks, we will likely see more businesses and governments begin to accept cryptocurrencies as a legitimate form of payment.
