The Town Council of Zug in Switzerland announced May 3 that its residents will be allowed to use Bitcoin to pay for municipality services as part of a trial run.
Zug residents will be allowed to use up to 200 Francs worth of Bitcoin for different services.
The trail will continue through 2016 before the town council conducts an analysis to gage the cost and benefits of the measure. That analysis will determine whether the program continues.
Sometimes referred to as “Crypto Valley,” Zug is known for its growing fintech industry.
“Our goal is to meet their [fintech entrepreneurs] needs for optimal development in our thriving economic environment,” said Mayor Dolfi Müller.
Conveniently for Bitcoin, Zug happens to be in a country known for its business friendly environment and lax tax laws. According to Bitcoin.com, Zug boasts one of the lowest tax rates in the world.
Xapo, one of the world’s largest Bitcoin wallets, moved their headquarters to Switzerland last year.
“This combination of a hands-off approach by the government and large tax