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Bitcoin To Pay For Public Service In Zug Switzerland

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Bitcoin To Pay For Public Service In Zug

Zug, a city in Switzerland is going to start a trial through which services for the public will be paid through Bitcoin beginning from July 1st, 2016.  The town has moved fast as July 1st is the date when Bitcoin’s license to operate in the European Union will go into effect.

The service will be a small trial. It will allow people to spend almost 200 francs, which is equal to 206 USD, in return for community service. The ability to pay more via Bitcoin might also be added later. The residents can pay for municipality services and public utilities via the service.

The trial will end on December 31st, 2016. It may be continued thereafter.  This will depend on the end of trial analysis which will calculate the cost and benefit of the trial.

The town of Zug has a population of 30,000 people and it is one of the more affluent areas of Switzerland. The city also controls almost 3% of the oil trade of the world and it has an emerging financial technology center. The town is already dubbed as “Crypto Valley” by with 15 financial tech companies already established there.

The new move was reported on the local website StadZug in which the mayor of Zug, Dolfi Müller, was also quoted as being supportive of the new move. He said that he will soon invite financial tech companies to build a narrative to brainstorm with the City Council of Zug.

Switzerland is a good place for businesses as it has a very business friendly environment and low tax rates. Indeed, Zug itself has one of the lowest tax rates to be found globally. The town also has a very lax and hands-off approach to the economy leading to it being an excellent location for new businesses to begin their journey. In light of perhaps these reasons, Xapo (a Bitcoin wallet service) relocated their headquarters to the country in 2015.

 

 

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