Bitcoin can be used to pay for public services in the Swiss tax haven town of Zug

The town of Zug is a city in north-central Switzerland. It is located on the northeastern shore of Lake Zug and on the Zurich-Milan railway line. It has a population of about 30,000. Standing in the city, you can overlook the thousand-year-old snow in the Alps.

Switzerland has a total of 26 cantons, Zug is the smallest one, with only 115,000 residents, and the town of Zug is its capital.

On May 3, 2016, the Zug town council decided to accept Bitcoin as payment for its dues and utilities as part of a trial of cryptocurrency.

Swiss Town of Zug Welcomes Bitcoin

The town is known for its fast-growing financial technology (fintech) scene, and has even been dubbed the “Crypto Silicon Valley” by some, with 15 fintech companies now headquartered in the city. Clearly, the town council hopes that Zug’s trend as a fintech hub will continue.

The report by the local mayor Dolfi Müller stated:

“We want to show that we are open to this new technology by getting involved with Bitcoin first-hand. We will invite Fintech companies to come to the town of Zug and talk to the town council. Our goal is to meet their needs to optimize the development of our thriving economic environment.”

As a pilot project, it will initially allow payments of up to 200法郎, with larger amounts likely to be introduced in the future.

The trial will continue throughout 2016 and an analysis of the costs and benefits of the decision will be conducted, which will ultimately determine whether the town council will continue to allow Bitcoin to be used to pay for municipal services.

It may sound a little strange to be conducting such an experiment in a town of fewer than 30,000 people, but it could be an ideal test bed. Zug has a laissez-faire approach to its economy and has more financial clout than you might think, since 3% of the world's oil trade passes through the region.

What do you think of the town of Zug's decision to experiment with Bitcoin?