Liechtenstein Joins Zug and Lugano in Accepting Bitcoin for Government Services

Liechtenstein, a small European nation, has announced plans to accept Bitcoin (BTC) as payment for government services. The country's Prime Minister, Daniel Risch, who also serves as finance minister, made the announcement.

Risch was quoted as saying, "A payment option with Bitcoin is coming," but did not provide a specific timeline.

The move is part of Liechtenstein's continued embrace of blockchain technologies.

However, the country is unlikely to hold on to the Bitcoin it receives. Instead, it will accept deposits in Bitcoin and immediately exchange them for Swiss francs, the national currency. This approach is designed to avoid the currency's volatility.

Liechtenstein is part of the European Economic Area, and as such, the EU's Markets in Crypto-Assets (MiCA) regulation could apply. This regulatory clarity could attract more crypto firms to the region.

Similar to Gibraltar and the Isle of Man, Liechtenstein is a small but thriving cryptocurrency hub in Europe.

The country's Blockchain Act, which passed in 2019, provides clear crypto regulation, and several crypto-focused businesses have set up operations in the country since then.

The nearby Swiss communities of Zug and Lugano have already started accepting Bitcoin for taxes and public services, with retailers such as McDonald's also accepting BTC.

Despite this, Liechtenstein is cautious about investing in Bitcoin or other cryptocurrencies.

Risch expressed that they are currently too risky for the country's multibillion-dollar treasury, but the verdict may change in the future.

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