Is Bitcoin a Payment Option in Liechtenstein?

Liechtenstein’s Prime Minister, Daniel Risch, recently announced that the country is planning to accept Bitcoin (BTC) as a payment option for state services. Risch, who also holds the position of finance minister in Liechtenstein, confirmed that the option to pay with Bitcoin will be available in the near future.

Is Bitcoin a Payment Option in Liechtenstein?
Is Bitcoin a Payment Option in Liechtenstein? Image by pvproductions on Freepik

In an interview with the German business daily Handelsblatt, Liechtenstein may permit citizens to pay for government services using Bitcoin. Upon confirmation of the payment, the authorities will have the choice to convert the cryptocurrency into Swiss francs, which is the official currency of the European microstate.

However, there is no announcement regarding a specific timeline for the implementation of this payment option. Meanwhile, the Swiss communities of Zug and Lugano have also adopted a similar approach. They are accepting Bitcoin as payment for certain taxes and public services. In addition, Risch has reportedly expressed openness to the possibility of investing state funds in Bitcoin at some point in the future.

Liechtenstein’s state reserves currently stand at 2.23 billion Swiss francs ($2.51 billion), which is three times its annual budget of 900 million francs ($1 billion). These reserves are invested in capital markets.

Furthermore, a portion of these funds may be invested in the world’s largest cryptocurrency, Bitcoin. However, Risch stated that crypto assets, including Bitcoin, are still deemed too risky for investment at present. Nonetheless, he acknowledged that this assessment could change over time.

Lugano is Already Bitcoin Friendly

In March 2022, the Swiss city of Lugano, situated less than 200 kilometers away from Liechtenstein’s capital Vaduz, made headlines by introducing Bitcoin (BTC), Tether (USDT), and its own LVGA Points token as legal tender. This initiative was made possible through a collaboration between the town’s authorities and Tether.

Paolo Ardoino, Tether’s CTO, lauded El Salvador’s adoption of Bitcoin. He also suggested that Lugano could similarly benefit from the adoption. “El Salvador’s GDP increased by 10% and its tourism by 30% after declaring Bitcoin a legal tender. Imagine what we can do in a city at the center of Europe.”

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The move, dubbed Plan ₿, also aims to allow locals to pay taxes or public service fees using the aforementioned assets. According to Tether, the initiative has been successful in its first year of existence. As of March 2023, more than 150 domestic merchants have accepted BTC, USDT, and LVGA as payment methods. Furthermore, the total number is expected to exceed 2,500 by the end of 2023.

Closing Thoughts

Currently, there is a ton of regulations and debacle for crypto in the States. However, many countries from around the world are already adopting Bitcoin at an incredible pace. Therefore, learn how to buy Bitcoin now!

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