Switzerland’s canton of Zug, home to the so-called “Crypto Valley,” will start accepting bitcoin and ether for tax payments, as the popularity of cryptoassets keeps on rising.
According to Bloomberg, in a statement, the canton revealed residents will be able to use the top two cryptocurrencies for tax payments in February 2021, with a trial of the tax scheme set to come in the next few weeks. The statement added:
Tax settlement by means of crypto currency will be available to both companies and private individuals up to an amount of 100,000 Swiss francs ($109,670).
The region of about 127,000 will start accepting cryptocurrency payments via the Zug-based broker Bitcoin Suisse, which will convert the BTC and ETH to Swiss francs before transferring the funds to the state.
Zug is well-known for its low corporate taxes, and it has been accepting BTC payments for certain government services since 2016. Several cryptocurrency firms are based in the region. Bitcoin’s recent rally during the coronavirus pandemic and subsequent economic downturn has seen various experts suggest it may act as an inflation hedge.
Niklas Nikolajsen, founder and Chairman of Bitocin Suisse, said:
Everybody cares about a $0.5 trillion-market. There’s almost nothing controversial about trading Bitcoin anymore. It’s completely mainstream.
As CryptoGlobe reported, earlier this year the Swiss municipality of Zermatt started accepting bitcoin as a means of payment for “local taxes and official transactions.” Zermatt is also accepting bitcoin with the help of Bitcoin Suisse.
Featured image via Pixabay.