Liechtenstein Prime Minister Daniel Risch has announced plans to accept Bitcoin (BTC) as payment for government services. As reported in local media, the European micro-nation continues to embrace blockchain technology.
Risch, who is also finance minister, said:
“A Bitcoin payment option is coming.”
However, he did not give a schedule. Also, the Principality is unlikely to accept Bitcoin and “hodl” (save) the satoshis it receives. Instead, it will accept Bitcoin deposits and immediately exchange them for Swiss francs, the national currency. The direct exchange in fiat money avoids the volatility of the currency.
Despite not being a member of the European Union, Liechtenstein is part of the European Economic Area, where the nEuropean regulation Markets in Crypto-Assets (MiCA). This regulatory clarity could attract more crypto companies to the region.
Like Gibraltar and the Isle of Man, Liechtenstein is a small but thriving cryptocurrency hub in Europe. The Liechtenstein Blockchain Law, which was passed in 2019, provided clear cryptocurrency regulation, with several cryptocurrency-focused companies establishing operations in the country since then.
The nation is following a similar course to the nearby Swiss communities of Zug and Lugano, which accept Bitcoin for some taxes and utilities, with retailers including McDonald’s also accepting BTC.
However, the sixth smallest nation in the world is cautious when it comes to investing in Bitcoin or cryptocurrencies. Risch expressed that Bitcoin and other cryptocurrencies are currently too risky for the country’s multitrillion-dollar treasury, but the verdict may change in the future.
This move by Liechtenstein coincides with a growing trend of smaller nations embracing cryptocurrencies and blockchain technology.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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