Authorities in the canton of Zug now embrace cryptocurrency for tax settlement.
The Swiss canton of Zug is making it easier to imagine a world in which cryptocurrency users are resolutely in the mainstream.
The canton — which has earned itself the moniker of “Crypto Valley” for its positive stance towards cryptocurrencies — will begin allowing citizens to pay taxes in Bitcoin (BTC) and Ether (ETH).
According to Bloomberg on Sept. 3, “tax settlement by means of crypto currency will be available to both companies and private individuals up to an amount of 100,000 Swiss francs ($109,670).”
Roughly 127,000 people live in the region, which has previously taken steps to accept Bitcoin payments for select government services.
The new, significantly more wide-ranging move to accept taxes in crypto has been enabled by a partnership between the canton and crypto broker Bitcoin Suisse AG, which is based in Zug.
Bitcoin Suisse has previously partnered with Swiss authorities in Zermatt to enable taxpayers in that region to use Bitcoin as a means of payments.
Bitcoin Suisse founder Niklas Nikolajsen bullishly told reporters that “there’s almost nothing controversial about trading Bitcoin anymore. It’s completely mainstream.”
In his view, Bitcoin’s strong rally during the coronavirus pandemic is likely to strengthen the case for the currency’s resilience and longevity amid a rapidly changing economic landscape.
Despite this horizon, in the immediate aftermath of the COVID-19 crisis, local cryptocurrency firms have struggled. The Swiss federal government recently rejected a 100 million franc request by the canton of Zug intended to help keep local crypto businesses afloat.
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