The government of Liechtenstein is studying possibilities of using BTC to pay for public services and also considering options for investing in the first cryptocurrency.
Citizens of the Principality of Liechtenstein will be able to pay for some public services with Bitcoin. This was announced by Daniel Risch, Prime Minister of the country, in a comment to Handelsblatt. However, the politician didn’t name the exact timeline for introducing the initiative.
The use of cryptocurrencies as a means of payment will be organized in two stages: financial institutions will accept BTC from the public and immediately convert it into Swiss francs, the national currency. Journalists note that some Swiss municipalities, in particular the cantons of Zug and Lugano, operate under a similar scheme, whose residents can also use crypto to pay for some public services.
In addition, the authorities of the Principality are considering options to invest in BTC some of their reserves, which exceed $6.2 billion. Local experts concluded that investments in cryptocurrencies, such as BTC, are still too risky, but this assessment can certainly change.
Recall that Liechtenstein is considered a crypto-friendly jurisdiction. The local parliament passed the Liechtenstein Blockchain Act in 2019, creating a regulated environment for digital asset service providers. In particular, it allows local banks to experiment with cryptocurrencies. For instance, LGT Bank, owned by the Princely House of Liechtenstein, offered instruments for private clients to invest in BTC and ETH, joining forces with the Swiss crypto bank SEBA. Another local bank, VP Bank, announced plans to tokenize physical assets in collaboration with the Swiss tech company Metaco.
