Minister offers government services paid for in crypto

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The Prime Minister of Liechtenstein, Daniel Risch, has announced his intention to accept Bitcoin (BTC) as a means of payment for government services. As reported on the premises newsthe micro European nation continues to embrace blockchain technologies.

Risch, who is also finance minister, reportedly said:

“A payment option with Bitcoin is coming.”

However, he did not give a time frame. Moreover, the principality is unlikely to accept Bitcoin and “HODL” or keep the Satoshis it receives. Instead, it will accept Bitcoin deposits and immediately exchange them for the Swiss franc, the national currency. Direct exchange in fiat currency avoids currency volatility.

Although not a member of the EU, Liechtenstein is part of the European Economic Area (EEA), where the next Regulation of Crypto Asset Markets (MiCA) Could Apply. This regulatory clarity could attract more crypto businesses to the region.

Similar to Gibraltar or the Isle of Man, Lichtenstein is a small but thriving cryptocurrency center in Europe. Liechtenstein’s blockchain law passed in 2019 provided for dedicated regulation for crypto, and several crypto-focused companies have since set up operations in the country.

The nation is following a similar course to neighboring Swiss communities in Zug and Lugano, which accept Bitcoin for certain taxes, as well as utilities and retailers, including McDonald’s.

Nevertheless, the sixth smallest nation in the world is cautious in its approach to investing in Bitcoin or crypto. Risch said Bitcoin and other cryptos are currently too risky for the country’s multi-billion dollar treasury–but the verdict may change in the future.

Related: Liechtenstein adapts blockchain laws to the development of the crypto landscape

This move by Liechtenstein coincides with a growing trend of smaller nations embracing cryptocurrencies and blockchain technology.

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