Liechtenstein could adopt Bitcoin as a payment method for Gvmt services, says PM

Liechtenstein could adopt Bitcoin as a payment method for Gvmt services, says PM

Liechtenstein Prime Minister – Daniel Risch – said that local lawmakers plan to enable Bitcoin payments for various government services. However, he did not reveal whether the country would adopt the primary cryptocurrency as legal tender.

Another country that has turned its focus to BTC is Liechtenstein's western neighbor – Switzerland – and in particular the city of Lugano. Domestic authorities have developed an infrastructure to make Bitcoin, Tether and LVGA tokens official means of payment in the region.

The Bitcoin payment option is coming

Daniel Risch – the Prime Minister of Liechtenstein who also serves as Finance Minister –revealedthat the ruling body could allow citizens to pay for government services in Bitcoin. Once the payment is confirmed, authorities have the option to exchange the crypto assets for Swiss francs (the official currency of the European microstate).

Daniel Risch, Brussels Research Group

It is worth noting that the politician did not provide any information on whether Liechtenstein intends to adopt BTC as legal tender, similar to what El Salvador and the Central African Republic did in 2021 and 2022, respectively.

This is not the European nation’s first interaction with the cryptocurrency industry. The Liechtenstein state parliamentpassedthe Token and Trusted Technology Service Provider Act, better known as the “Blockchain Act”. The legislation, which officially came into force at the beginning of 2020, sets clear standards in the industry and offers users maximum protection.

Liechtenstein’s leading private bank – LGT Bank – has also jumped on the crypto bandwagon. It partnered with SEBA Bank in 2022make possibleDirect investments in digital currencies for its customers.

"Cryptocurrencies are still in a phase of dynamic development. LGT has therefore initially created the appropriate, necessary processes and framework conditions for this type of investment," said CEO Matt at the time.

Lugano's efforts

The Swiss city of Lugano, less than 200 kilometers from the Liechtenstein capital Vaduz, made headlines in March 2022 by adopting BTC, USDT and its own LVGA points token as legal tender. The initiative was made possible through a collaboration between the city's authorities and Tether (the company behind the world's largest stablecoin).

The company’s CTO – Paolo Ardoino – praised El Salvador’s Bitcoin forays and argued that Lugano could also benefit from the adoption:

"El Salvador's GDP increased by 10% and tourism increased by 30% after Bitcoin was made legal tender. Imagine what we can do in a city in the center of Europe."

The move, called Plan ₿, also aims to allow locals to pay taxes or public service fees through the aforementioned assets.

tethersketchedin March of this year that the initiative was quite successful in its first year of existence. According to the company, more than 150 domestic merchants have accepted BTC, USDT and LVGA as payment methods, while the total number could exceed 2,500 by the end of 2023.

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