Despite plans to accept Bitcoin payments, Liechtenstein remains cautious about investing in cryptocurrencies.
Liechtenstein's Prime Minister, Daniel Risch, recently revealed plans to accept Bitcoin (BTC) as a payment method for government services, further cementing its reputation as a blockchain-friendly nation.
According to the local news portal Handelsblatt, Prime Minister, who is also a finance minister, didn't specify a timeline for this development.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
Non-custodial Wallet: Why Do You Need It Right NOW
It's worth noting that Liechtenstein isn't likely to "hodl" the Bitcoin it receives. Instead, the government will accept Bitcoin deposits and promptly convert them to Swiss francs.
It is believed that the immediate exchange to fiat money would help Liechtenstein to circumvent the volatile nature of cryptocurrencies.
Despite these progressive steps, Liechtenstein remains cautious about investing in Bitcoin or other cryptocurrencies. Risch stated that crypto is too risky for the country's multibillion-dollar treasury. However, he hinted that the verdict might change in the future.
Liechtenstein, although not an EU member, is part of the European Economic Area, where the EU's Markets in Crypto-Assets (MiCA) regulation could apply. Therefore, it can be assumed that in the next few years, the country will be flooded with new crypto firms.
The tiny European nation has emerged as a thriving cryptocurrency hub. In 2019, the country passed the Liechtenstein Blockchain Act, which provides clear crypto regulation, pushing several crypto-focused businesses to the country.
Liechtenstein seems to be following in the footsteps of nearby Swiss communities, such as Zug and Lugano, which already accept Bitcoin for some taxes and public services. On top of that, popular retailers like McDonald's also accept BTC payments in the area.
Liechtenstein's willingness to accept Bitcoin for government services showcases the nation's forward-thinking approach to embracing emerging technologies.
At the time of writing, Bitcoin (BTC) retails for $27,894.99, recording a 3.94% decrease in the last 24 hours.
