The mayor of the Swiss municipality of Chiasso announced that his municipality will start allowing its residence paying their taxes in bitcoin. This community is located on the southern areas of Switzerland bordering Italy, is vying with Zug in becoming the cryptocurrency hub of the country. This place styles itself as “Crypto Valley,” conducted a pilot test last year where they begun to accept payments with bitcoin for municipal services. The pilot test was met with success, for which, Zug has kept the program running.
Chiasso, or should we say “CryptoPolis”, accepts bitcoin for the payments of small tax up to a value of $261.
Mayor Bruno Arrigoni said, “Chiasso is recognised internationally as an epicentre of a growing technological and economic growth for both the canton and in Switzerland.” As a drive against the traditional financial sector’s contraction after the financial crisis, this move is apparently framed for Chiasso.
The scheme of Zug has also been capping payments of bitcoin fairly low, which only accepts them for up to the value of 200 Swiss francs.
Whilst there is lot of things for these towns to benefit by enticing cryptocurrency fans in setting up shop on their turf, it is prudent to throw caution to the wind.
The bitcoin’s value and other virtual currencies has been especially volatile in the recent weeks due to cracking down of the Chinese authorities on Initial Coin Offerings (ICOs) and a possible ban on the bitcoin exchanges altogether.
It is quite obvious that a highly regulated market like China is quite expected to have stringent regulations in place. Considering this, in the long run, crypto market will stabilise despite Chinese regulatory hassles.
Interestingly, allowing municipal tax payments through Bitcoin would give special recognition to cryptocurrencies. This will further motivate more countries to use them for official transactions. Imagine the day when global crude oil trade shifts from dollar to cryptocurrencies!