Bitcoin (BTC) can now be used to pay for taxes in Zug, Switzerland. Citizens and companies will have the possibility to pay up to 100,000 Swiss francs ($109,800) in Bitcoin or Ether. The city in Switzerland became one of the most popular crypto hubs in Europe and hundreds of companies are already installed there.
Zug to Accept Bitcoin for Taxes
The region is going to be working with Bitcoin Suisse AG, a company that is converting the funds into fiat currency to process the transfer to the government. The city is also known for having low corporate taxes has been a hub for digital assets and crypto-related companies.
In addition to it, Zug has been accepting virtual currencies in shops, public offices and other services providers have also attracted new clients by accepting digital assets.
Bitcoin (BTC), the largest cryptocurrency in the world has been in a bull market since March this year. The entire community remains very excited about the future of the digital currency and what could happen with it in the future. Indeed, some analysts consider Bitcoin could be a hedge against inflation considering countries have been printing large amounts of money to reduce the negative effects of the pandemic.
Bitcoin Suisse has been offering crypto trading services to clients and it registered a profit of 2.3 million francs. The company is also awaiting approval for a Swiss and a European banking license. This would certainly allow the firm to work with a larger number of companies and users from all over the world.
At the same time, they will be focusing on attracting users from Germany. They try to expand their services across Europe and the licenses are going to be very helpful. Furthermore, the new solutions they are offering for companies and users to pay for taxes are going to be certainly appreciated by the entire community.
In a recent statement, Zug’s finance director Heinz Trannler explained that they will be working in order to normalize the use of virtual currencies in everyday life. Paying taxes using the two largest digital assets will be something very useful and that users will certainly appreciate.
Despite that, it is worth mentioning that the city will not keep the funds in Bitcoin and Ethereum. They will be selling the digital assets for Swiss francs to be able to pay suppliers and services providers in fiat currency.