Liechtenstein, the microstate bordered by Austria and Switzerland, has moved forward with plans to accept Bitcoin as payment for government official services.
Via the effort, all cryptocurrency payments will be instantly converted into Swiss Francs to avert exchange rate issues. What’s more, the alpine country is taking the necessary cautionary measures needed, which is in line with the region’s growing acceptance of cryptocurrency.
Liechtenstein Becoming Crypto-Friendly
According to Finbold, Liechtenstein became the first government in the world to legislate cryptocurrencies. This was possible through the passing of the Liechtenstein Blockchain Act in 2019. Since then, many crypto-related businesses have made this country home, and is considered one of the few “financial centers in Europe” that promotes market expansion for cryptocurrency banking and investment services.
This, in combination with a fusion of modern technology as well as a favorable government regulatory environment, makes the country an attractive center for the crypto space. As does that fact that the Liechtenstein Cryptoassets Exchange (LCX) is strategically located in Liechtenstein to have easier access to the broader European market.
“That Liechtenstein is small and nimble no doubt informs how it has embraced forward thinking about digital assets,” said Craig Lancaster, Analyst and Content Specialist at Javelin Strategy & Research who has written about bitcoin regulation. “Still, one can’t help but notice the contrast with how regulation and legalities concerning the space have unfolded in the United States, which of course isn’t small or nimble.”
“This is an industry crying out for cogent regulation and one that isn’t getting it. Liechtenstein provides an example of how to approach digital assets in a way that recognizes they’re here to stay and folds them into the existing ecosystem.”
A Look Ahead
This move will undoubtedly spur a greater adoption of Bitcoin as a viable currency for everyday transactions. As the world of finance continues to embrace the digital age, small countries like Liechtenstein are setting a precedent for other nations to follow.