The crypto industry has seen another major step toward achieving mainstream adoption as Switzerland’s canton of Zug announced today that taxpayers within its jurisdiction can now pay their taxes using popular cryptocurrencies, Bitcoin (BTC) and Ether (ETH).
The region, which is known as a hub for crypto firms due to its favorable regulations toward the sector, said both firms and private individuals could make tax settlements in cryptocurrencies up to the tune of 100,000 Swiss Francs ($109,000).
According to the report, the development would see the Switzerland canton collaborate with Zug-based crypto broker Bitcoin Suisse AG to convert the digital currencies into its Swiss francs equivalent. After the successful conversion, the funds will be transferred to the state’s account, the report added.
Zug’s involvement with crypto
This is not the first time Zug will be accepting digital currencies as payment for government services. In mid-2016, the region launched a pilot Bitcoin payment project that allowed citizens to use the digital currency to make payments for government services that cost less than 200 francs.
The move seemed important at the time due to the increasing number of crypto firms in the region.
Even though Switzerland is friendly toward cryptocurrencies, which can be seen through its favorable regulations, the country’s major financial institutions do not share the same sentiment as it opts to avoid dealings with the asset class.
Bitcoin, a safe haven
Despite the novel coronavirus outbreak that is ravaging global economies, Bitcoin still managed to come out stronger after the March bear market and has since stayed above $10,000 for more than 20 days and counting.
This feat has prompted financial experts to consider Bitcoin as an “inflation hedge,” with popular firms seeking solace from the largest cryptocurrency by market cap.
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