This week, the Canton of Zug will start accepting crypto currencies Bitcoin (BTC) and Ether (ETH) for cantonal tax payments. The Canton has always been a pioneer in the blockchain space and is the heart of the Crypto Valley for a reason, now their decision is being implemented.
This big step for crypto adoption was announced a few months ago, but now it is finally being put into practice. A video shows how Swiss crypto-enthusiasts can use their Bitcoin (BTC) or Ether (ETH) to pay their taxes. Taxpayers should indicate they want to pay with crypto when they get their tax invoice.
— Bitcoin Suisse (@BitcoinSuisseAG) February 17, 2021
Afterward, they will receive an e-mail with a QR code they should scan using a crypto wallet of their choice to confirm the payment.
Zug as a pioneer
It’s only natural that this legislation would be passed here. The first blockchain companies arrived in Zug in 2013. Since then, the area has affectionately been dubbed “Crypto Valley.” Switzerland has provided a unique environment for blockchain and cryptocurrencies to flourish at an early stage.
Perhaps one endearing aspect for crypto enthusiasts is Switzerland’s decentralized system. The confederate system enables Swiss cantons to have high amounts of autonomy. Apart from providing a stable legal environment, crypto-friendly cantons offer low taxation and business-friendly regulations.
Crypto adoption in Switzerland
Galaxus, the largest online retailer in Switzerland, set a precedent in March 2019 when it allowed customers to pay with cryptocurrencies. In that instance, Swiss customers could use alternatives to BTC and ETH, since they accept several different altcoins.
Galaxus’ co-founder and chief innovation officer said cryptocurrencies were a natural step in the evolution of online payments. The company generated sales close to one billion Swiss francs (~$1.11 billion) in 2018.