• Liechtenstein is looking into allowing Bitcoin and other cryptocurrencies as payment methods for state services.
• The government would convert all payments to Swiss francs to avoid exchange-rate risks.
• Many stores and companies have been hesitant to accept cryptocurrency due to its volatility, but Liechtenstein is pushing for it to be used as a payment tool.
Liechtenstein Embracing Cryptocurrency
Liechtenstein – a small European nation – is making strides in the crypto community, with Prime Minister Daniel Risch announcing that the government will look into accepting bitcoin and other cryptocurrencies as payment methods for state services. All payments will be converted immediately into Swiss francs in order to avoid any exchange-rate risks, as the franc is currently the primary currency utilized by Liechtenstein.
Crypto’s Intended Use
Many forget that bitcoin and many of its digital counterparts were initially intended to serve as payment tools rather than speculation or hedge tools. Companies and stores have thus far been reluctant to accept cryptocurrency due to its volatility; fluctuating prices can result in losses on either side of the transaction if not managed properly.
The Push Towards Usability
This move from Liechtenstein is an important step forward in transforming cryptocurrencies into usable payment tools which everyday people can benefit from. Prime Minister Risch has stated that he and his colleagues have long been open to the ideas presented by bitcoin and its altcoins, further driving the goals of these digital currencies closer to fruition.
Minimizing Exchange Rate Risk
In order to minimize risk due to exchange rates, Liechtenstein plans on converting all crypto payments made for government or national services into Swiss francs right away, ensuring that neither side of the transaction loses out due any pricing discrepancies along the way. This ensures stability within their economy while still encouraging adoption of these new technologies in a responsible manner.
The Future of Crypto Payments
Thanks largely in part to Liechtenstein’s recent decision, there will likely be more progress when it comes towards making cryptocurrencies viable forms of payment at both online and physical locations around the world. With governments finally beginning to embrace this technology, we can only expect more positive news stories like this one emerging over time!