Many cities and regions have managed to encourage investment and economic activities within them. This is the case for Zug, a canton in Switzerland that now accepts payment of taxes using cryptocurrencies.
Zug is home to hedge funds, crypto firms, and commodity traders. Additionally, it will now start allowing citizens to pay taxes in Bitcoin and Ether as acceptance of cryptocurrencies continues to grow.
Swiss Steps to Cryptocurrency Adoption
This region is collaborating with the broker Bitcoin Suisse AG, which converts the cryptocurrencies into francs and transfers the amount to the state.
Zug has been accepting Bitcoin payments for certain government services since 2016. It also inspired the Zermatt ski resort to do the same.
However, the highlight is that now the tax settlement through cryptocurrencies will be available for both companies and individuals. The maximum to be paid is 100,000 Swiss francs ($ 109,670).
It is not surprising that this is generated precisely in Switzerland, considering that in general they have a favorable regulation for the development of the crypto industry. Obviously there is still a long way to go, but the start has been quite solid not only in Zug, but in Switzerland in general.
What other steps are still to be taken in accepting everything related to the crypto world?
Even when the environment is favorable, banks so far do not openly offer blockchain services. This is due to the risks involved in the volatility of many common cryptocurrencies.
However, as revealed by the president of Bitcoin Suisse, Niklas Nikolajsen in an interview with Bloomberg, with the rally of Bitcoin during the pandemic this could change the perception that is had. For example, for some it could even act as an inflation hedge.
Bitcoin Suisse’s revenue was 20.9 million francs last year with a profit of 2.4 million francs. These were mainly for services related to cryptocurrency trading.
While the firm also offers its services to banks with clients who want to trade digital currencies, Bitcoin Suisse recently applied for Swiss and European banking licenses.
With a European license, Bitcoin Suisse could actively target clients on the continent, where its main focus would be Germany. “Our main customer base is Switzerland, Germany and Scandinavia. But we have much more to do in Germany and we cannot have more Swiss customers when there are ten times as many Germans. “Nikolajsen said.