Bitcoin Accepted: European Country Moves To Allow Payments For Government Services

Liechtenstein's government is considering the acceptance of Bitcoin BTC/USD as a form of payment for various state services, according to Prime Minister Daniel Risch.

Speaking with the German newspaper Handelsblatt, he said the plan would involve converting any cryptocurrency received into Swiss francs immediately to avoid potential exchange rate risks.

Although the Swiss franc remains the official currency of Liechtenstein, Prime Minister Risch, who also serves as the country's finance minister, has expressed his willingness to explore the possibility of investing state reserves in cryptocurrency assets.

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Handelsblatt reports that Liechtenstein, a debt-free nation, saves up to three times its annual budget of 900 million francs (approximately $1 billion) each year, which is typically invested in securities.

"Crypto assets like Bitcoin are currently still too risky," Risch said.

"But this assessment can change." The prime minister's comments suggest a potential shift in the country's approach to cryptocurrencies and digital assets, reflecting the growing global interest in this emerging financial landscape.

The European Union is on the verge of completing its groundbreaking licensing framework called the Markets in Crypto Assets (MiCA) regulation.

This development could attract cryptocurrency companies in search of clear regulatory guidelines. While Liechtenstein is not an EU member, it belongs to the larger European Economic Area (EEA), where the framework's influence may also be applied.

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