Liechtenstein, a small European country known for its financial innovation and stability, is planning to accept Bitcoin (BTC) as a payment option for state services, according to Prime Minister Daniel Risch. The proposal envisages immediately swapping any cryptocurrency received for Swiss francs, in order to avoid exchange-rate risks, Risch told the German newspaper Handelsblat
Liechtenstein’s plan to accept BTC is in line with the country’s ongoing efforts to adopt crypto and blockchain technology. The small European country has already implemented a comprehensive legal framework for crypto assets. In January 2022, the Blockchain Act was implemented as a guide on the treatment of cryptocurrencies. The law aims to provide clarity and protection for investors, service providers, and users of digital assets.
PM Risch, who also serves as finance minister, said that Bitcoin would not be granted equal status with the Swiss Franc, which is the principality’s official currency. He also signaled openness to investing state reserves in crypto assets in the future. The debt-free country saves as much as three times its 900 million-franc ($1 billion) annual budget, investing the money in securities.
“Cryptoassets like Bitcoin are currently still too risky,” Risch said. “But this assessment can change.”
Liechtenstein will Benefit From its Acceptance of Bitcoin
Other European jurisdictions, like the Swiss City of Lugano, have already started to accept Bitcoin as legal tender. If the proposal is passed, Liechtenstein could become one of the first European countries to accept Bitcoin as a legal payment. This would also indicate that the country is ready to embrace emerging technology instead of stifling it.
Digital asset companies that are met with hostile regulations in other countries might consider Liechtenstein as a haven. The principality might actually join the ranks of Dubai and Hong Kong as prime destination for digital asset investors. This shows that crypto is not an enemy to be persecuted, but rather a technological tool. It only needs clear and just regulations to flourish.
About Liechtenstein
Liechtenstein is a small European country located between Switzerland and Austria. It is the 6th smallest country in the world, with a land area of 160 square kilometers. The country has a small population of just under 40,000. It is a constitutional monarchy with a hereditary prince as the head of state. It is known for its picturesque landscapes and stunning castles.
The country has a high standard of living, a strong banking sector and a low tax rate. It is also known for its financial innovation and stability. In 2020, the country started to implement a comprehensive framework for digital assets.
Source: Handelsblatt
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