A city in Switzerland has started to accept bitcoin as a mode of payment. As part of a Bitcoin pilot project, the city of Zug now allows its residents to pay their taxes, fees and fines with the digital currency.
The decision to run a Bitcoin pilot project was first taken in the month of May by the City Council of Zug. According to the decision, the City Council decided to accept bitcoin payments for services for a duration of 6 months starting July 1, 2016. The pilot project is part of the city’s initiative to attract more fintech and digital currency companies to set up their operations in and around the city. However, the digital currency payments are limited to 200 francs as the city representatives intend to keep the risk levels low during the trial phase.
With this project, Zug has become the first city in the world to accept bitcoin payments from the residents for utilities and government services. Those interested in making payments using the digital currency will have to do it over a counter set up in the Town Hall.
“We want to express our openness to new technologies and expressed early on by experiencing it. And we will invite to exchange ideas with the City Council Fintech companies in the region train. Our goal is to meet their needs for optimal development in our living and economic environment in more detail. “
Zug already has some of the leading digital currency companies in its neighborhood. With the city adopting digital currency for its official use the city council is sending out an invitation to all the fintech companies across the world to set up shop in the region. Few companies already operation from in and around Zug includes Bitcoin Suisse, Ethereum, Monetas, Shapeshift, Xapo and more.