Switzerland’s government has proven to be more supportive of digital currencies. Besides being a country with friendly regulatory moves on cryptocurrency, most regions are using cryptocurrencies to pay for goods, including government services. Today, one of the Canton in Switzerland disclosed it now accepts taxes in Bitcoin and Ether from residents.
Zug Residents Can Pay Taxes in Bitcoin
As BNN Bloomberg reported on Thursday, Zug’s canton has rolled that support to enable residents to pay their taxes in Bitcoin and Ether or ETH, the native digital currency of Ethereum. To enable this service, the local authorities collaborated with Bitcoin Suisse AG, a cryptocurrency broker based in Zug.
Once residents pay their taxes in Bitcoin or Ether, the cryptocurrency will convert and transfer the fund to the local authorities as Swiss francs, which is the country’s legal tender. Meanwhile, in line with the authorities’ statement, residents and companies can choose to settle their taxes in cryptos with up to $100,000. The canton precisely noted:
“Tax settlement by means of crypto currency will be available to both companies and private individuals up to an amount of 100,000 Swiss francs ($109,670).”
Switzerland at The Forefront in Crypto Adoption
The development today is quite a milestone, as it provides cryptocurrencies investors in the region with another option to pay for taxes. Ultimately, it will push towards more adoption of digital currencies in the region, and Switzerland, thereby growing participation in the crypto market at large. Niklas Nikolajsen, the founder of Bitcoin Suisse, commented:
“Everybody cares about a $0.5 trillion-market,” Nikolajsen said in an interview in Zug. There’s almost nothing controversial about trading Bitcoin anymore. It’s completely mainstream.”
In a separate development, another Swiss Zermatt announced that its residents could pay for government services, including their taxes in Bitcoin. Amid the fear of economic collapse, many people are saying that Bitcoin might be adopted massively by Swiss residents to hedge against inflation.