The Bitcoin cryptocurrency will soon become a legal tender in Liechtenstein. Daniel Risch, Prime Minister and Minister of Finance; announced the news earlier this week.
This measure is expected Avoid currency exchange risks by accepting Bitcoin deposits and immediately converting them into the country's fiat currency, the Swiss franc. During the initial period of accepting Bitcoin payments, the provision will go live for certain government services only. At the moment it has not been revealed what these services will be.
Bitcoin is on its way to becoming legal tender in Liechtenstein
Daniel Risch is also open to investing the state reserves in Bitcoin in the future. He is also confident that Bitcoin will not soon achieve the same financial status and authority as the Swiss franc. This would be another country moving to not be so economically dependent on a foreign currency. El Salvador already did it with Bitcoin, so as not to depend on the US dollar. For its part, Zimbabwe is studying the launch of a gold-backed digital asset to keep its economy stable in the face of dollar fluctuations.
For now, it is not known when Liechtenstein will start to push Bitcoin into widespread use, and at some point. put it as legal tender. Risch has noted that while he understands the element of volatility attached to cryptocurrencies, he believes this might be the right time to introduce cryptocurrencies as part of his current financial system.
«Cryptocurrencies like Bitcoin are still too risky. But, of course, this assessment can change", added the Prime Minister of Liechtenstein. On this subject, the Bitcoin price has come closer to $15.000 than to the range close to $20.000 where it is expected to settle in the future. Many failed cryptocurrency projects have affected them, but it can be seen that little by little, the bad actors and scams of the cryptocurrency sector are coming to light, leaving the more stable and serious projects behind.
Source: Gadgets 360
