Liechtenstein’s Prime Minister, Daniel Risch, has announced that Bitcoin will soon be accepted as a payment option for government services. This move comes as the small European nation continues to embrace blockchain technologies, which have attracted various crypto-focused businesses since the passing of the Blockchain Act in 2019. However, it is unlikely that Liechtenstein will hold onto any Bitcoin received for government services. Instead, it will exchange it immediately for Swiss francs to avoid the volatility associated with cryptocurrencies.
Despite the country’s enthusiasm for blockchain, Risch noted that Bitcoin and other cryptocurrencies are currently too risky for the country’s treasury. Nevertheless, this decision could change in the future as cryptocurrencies continue to gain acceptance and mainstream adoption. The announcement follows a growing trend among smaller nations to adopt cryptocurrencies and blockchain technology, with nearby Swiss communities of Zug and Lugano also accepting Bitcoin for taxes and public services. Liechtenstein’s inclusion in the European Economic Area also means that it could attract more crypto firms to the region, especially with the regulatory clarity provided by the EU’s Markets in Crypto-Assets regulation. Overall, the move shows Liechtenstein’s willingness to keep up with the technological advancements in the digital currency space.
