Liechtenstein PM Daniel Risch Announces Plan to Accept Bitcoin, As payment for government services. As local news reports, the tiny European nation continues to embrace blockchain technology.
Risch, who also served as finance minister, was quoted as saying: "A payment method using Bitcoin is coming." However, he did not give a timetable. Also, the Principality is unlikely to accept Bitcoin and "hodl" (hold) the satoshis it receives. Instead, it will accept bitcoin deposits and instantly convert them into the national currency, Swiss francs. Converting directly to fiat currency avoids currency fluctuations.
Although not a member state of the European Union, Liechtenstein is part of the European Economic Area, where the EU's Market in Cryptoassets (MiCA) regulations may apply. This regulatory clarity could attract more cryptocurrency companies to the region. Similar to Gibralt ar and the isle of Man, Liechtenstein is a small but thriving cryptocurrency hub in Europe. The Liechtenstein Blockchain Act passed in 2019 provided clear crypto regulation, and several crypto-focused businesses have since established operations in the country.
The country follows a similar path to the nearby Swiss communities of Zug and Lugano, which accept bitcoin as payment for certain taxes and public services, as well as retailers including McDonald's. Still, the world's sixth-smallest country is cautious about investing in bitcoin or cryptocurrencies. Risch said bitcoin and other cryptocurrencies are currently too risky for the country's multibillion-dollar coffers, but could change the verdict in the future. The move by Liechtenstein coincides with the growing adoption of cryptocurrencies and blockchain in technology in smaller countries.
