In the idyllic, sleepy town of Zug in Switzerland, a city council meeting today saw the authority decide to accept bitcoin as a valid payment for municipality services as a part of a pilot program. Already a burgeoning Fintech destination, the town of Zug in…
In the idyllic, sleepy town of Zug in Switzerland, a city council meeting today saw the authority decide to accept bitcoin as a valid payment for municipality services as a part of a pilot program.
Already a burgeoning Fintech destination, the town of Zug in Switzerland (some call it Crypto Valley, with over 15 industry-relevant companies) is further endearing itself as the go-to destination for startups and companies in the bitcoin and blockchain industry by having its public set a welcoming example by adopting the cryptocurrency.
In a report by local publication StadZug today, town mayor Dolfi Müller stated:
We want to express our openness to new technologies by expressing our own experiences (with bitcoin). We will invite Fintech companies in Zug to exchange ideas with the City Council.
Our goal is to meet their needs for optimal development in our thriving economic environment.
The pilot program to embrace the cryptocurrency will see the city council govern by initially limiting bitcoin payments’ equivalent to 200 Swiss Francs for municipal services.
The program will last until the end of 2016. An analysis will follow to see how the program has fared. According to the report, the city council will then decide if Bitcoin and indeed other digital currencies are acceptable as payments for municipal services without any restrictions.
Widely known as one of the world’s lowest tax regimes, 3% of the world’s petrol (crude oil and refined) is traded through Zug and its neighboring town of Baar. It’s tax benefits make it a de-facto economic hub where trade flourishes on a global scale.
While Zug has frequently been associated as a tax haven and a destination for commodities trading, cryptocurrency- and blockchain-startups have recently set up shop in the so-called Crypto Valley.
Zug’s latest endeavor to embrace and encourage innovation such as bitcoin among its public is certain to make it an attractive destination for Bitcoin and blockchain companies and enthusiasts.
Disclaimer: Translations are unofficial.
Images from Shutterstock.
Last modified: January 25, 2020 11:48 PM UTC