Swiss City of Zug accepts Bit…

Swiss City of Zug accepts Bitcoin payments


The Swiss Municipality of Zug will accept Bitcoin as payment for municipal services. The pilot will run from July 1 till the end of the year. According to Niklas Nikolajsen, CEO and cofounder of the Bitcoin Suisse trading house, this is the first time that a government agency will accept the cryptocurrency.

The Municipality of Zug will be accepting Bitcoin payments up to a value of CHF 200 (about 180 Euro). The City Council made this decision earlier this month. It fits their ambition to become a regional hub for the Financial Technology (FinTech) sector in the country. According to the SWI news article, the self-appointed "crypto valley" of Switzerland hosts around fifteen companies specialising in the blockchain technology that underpins Bitcoin.


Bitcoin is a digital currency based on the blockchain technology. Its wallets and transactions are protected by strong cryptography — hence the term cryptocurrency — while its distributed transaction store serves as a public ledger.

What makes this move by the Municipality of Zug special is that governments accepting currencies other than their own for taxes and fees lose the ability to impose a hidden tax on holders of the official currency by "printing" additional money.

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