Liechtenstein Approves Bitcoin For Payment Of Specific State Services
Liechtenstein, a small European nation situated between Switzerland and Austria, has approved the use of Bitcoin to pay for specific state services.
The Prime Minister and Minister of Finance of Liechtenstein, Daniel Risch, announced the news in an interview with the German newspaper Handelsblatt on Sunday. This bold move comes when many countries around the world are still struggling to regulate the use of cryptocurrencies.
Liechtenstein embraces Bitcoin
In the interview, Risch revealed that the country plans to accept deposits in Bitcoin and immediately exchange them for Swiss francs, the national currency of Liechtenstein. While he didn’t give a specific timeline for implementing the new payment option, Risch did express support for this move.
According to the Prime Minister, cryptocurrencies like bitcoin are still too risky. “But of course that assessment could change.” He added that the country’s reserves, which are mainly invested in the capital market, currently amount to CHF 2.23 billion and that he is open to investing the state’s reserves in Bitcoin in the future.
“We’re not taking big risks with state money, but we’re always open to new ideas and possibilities,” Risch said in the interview.
While the United States has shown a strong crackdown on cryptocurrencies and anything related to it, Liechtenstein has taken a progressive approach and embraced the potential benefits of the technology behind it – the blockchain. Liechtenstein’s decision to allow Bitcoin payments for state services is a significant step towards cryptocurrency adoption.
Meanwhile, other countries around the world have also embraced Bitcoin and other cryptocurrencies in recent years. In 2021, El Salvador became the first country to adopt Bitcoin as legal tender.
In the same year, Ukraine legalized cryptocurrency and allowed exchanges to operate in the country. Miami Mayor Francis Suarez also announced that the city would start accepting tax payments in Bitcoin and other cryptocurrencies.
Regulatory status in Europe
Liechtenstein’s decision to accept Bitcoin payments for specific state services indicates a growing trend across Europe. In recent years, several European countries have taken steps to regulate cryptocurrencies and provide a clear legal framework for their use.
For example, on April 20, the The European Parliament approved a regulatory framework for crypto, known as the Markets in Crypto-Assets (MiCA) regulation. The new legislation aims to provide greater legal certainty and consumer protection for individuals and companies involved in crypto-related activities.
In addition to MiCA, other European countries have also adopted various approaches to crypto. For example, Germany recognized Bitcoin as legal tender back in 2013, while France established a regulatory framework for initial coin offerings (ICOs).
Despite the growing acceptance of cryptocurrencies around the world, there is still a lack of consensus on their regulatory status. Some countries like Malta and Switzerland have embraced digital currencies and created favorable regulatory environments for blockchain companies.
others, like Russia and China, took a more cautious approach and imposed restrictions cryptocurrency trading and mining.
Regardless, Bitcoin has maintained composure to some extent amid regulatory uncertainty. Over the past 24 hours, the top cryptocurrency is down just 3.7% with a trading price of $27,876.
Shutterstock Featured Image, TradingView Chart