The Swiss province of Zug - the heart of the country's thriving crypto and blockchain industry - will be allowed to pay tax bills of up to $ 109,670 via Bitcoin (BTC) or Ethereum (ETH) from February 2021.
The cantonal tax authority, according to Bloomberg, has struck a deal with cryptocurrency custodian Bitcoin Suisse, which is headquartered in Zug. The agreement will see the company convert Bitcoin and Ethereum payments into fiat Swiss francs and transfer the funds to ZOG.
The news agency quoted the company's founder and president Niklas Nikolajsen as saying,
"Everyone is interested in the roughly $ 0.5 trillion US dollar in the market. There is nothing controversial about Bitcoin trading anymore. It's quite the trend."
The agency also quoted the canton as saying that "tax settlement via [digital assets] will be available to both companies and individuals for up to $ 109,670."
Zog has claimed that her initiative will help "normalize" the use of encrypted payments for everyday life in the canton, and she said it will conduct trials in the next few weeks to ensure that its rollout continues next year without any last-minute hitches.
The canton also mentioned that it will not accept partial payments in digital currencies, as the tokens cover a portion of the tax bill and the rest comes in the form of cash. It seems that for this part of the world, where digital currency can also be used to pay for a small set of local government services, cryptocurrency is all-or-nothing.
