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Bitcoin gains traction in Liechtenstein as Minister suggests government services be payable in cryptocurrency.
Liechtenstein’s Prime Minister Daniel Risch has revealed intentions to accept Bitcoin (BTC) as a method of payment for government services. According to local news reports, the micro-European country is continuing to adopt blockchain technologies.
Risch, who also holds the position of finance minister, is cited as stating:
“A payment option with Bitcoin is coming.”
However, he did not specify a timeline. Additionally, the principality is not expected to accept Bitcoin and “hodl” (retain) the satoshis it acquires. Instead, it will accept Bitcoin deposits and promptly convert them into Swiss francs, the official currency. This direct conversion into fiat currency avoids the volatility associated with the cryptocurrency.
Although not a member of the European Union, Liechtenstein is part of the European Economic Area, where the EU’s Markets in Crypto-Assets (MiCA) regulation may be applicable. This regulatory clarity could draw more crypto companies to the area.
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Like Gibraltar and the Isle of Man, Liechtenstein is a small yet flourishing cryptocurrency center in Europe. The Liechtenstein Blockchain Act, enacted in 2019, established clear regulations for cryptocurrencies, leading to the establishment of several crypto-focused enterprises in the country since then.
The nation is following a path similar to the nearby Swiss regions of Zug and Lugano, which accept Bitcoin for certain taxes and public services, with retailers such as McDonald’s also accepting BTC.
Nevertheless, the sixth smallest country in the world is cautious regarding investments in Bitcoin or cryptocurrencies. Risch indicated that Bitcoin and other digital currencies are presently too risky for the nation’s multibillion-dollar treasury, although this stance may evolve in the future.
Related: Liechtenstein adapts blockchain laws to developing crypto landscape
This initiative by Liechtenstein aligns with a rising trend of smaller nations adopting cryptocurrencies and blockchain technology.
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