The Swiss municipality of Zermatt has introduced a Bitcoin tax payment option in partnership with the crypto company Bitcoin Suisse. The Swiss city has now become the second city in Switzerland which lets residents pay their taxes BTC after Zug.
29 January, 2020 | AtoZ Markets – The idea of Bitcoin Tax Payments came from the canton of Zug, a hotspot for blockchain companies in Switzerland dubbed crypto valley. The Swiss city Zug started accepting bitcoins for the payment of taxes through Bitcoin Suisse in 2016. Now Zermatt is also applying the same pioneering spirit, and Bitcoin Suisse is continuing the introduction of cryptocurrencies at a municipal level in Switzerland.
Municipality of Zermatt Now Accepts Payments in Bitcoin
The Swiss municipality of Zermatt now allows residents to pay taxes in bitcoin. The new payment option will be offered through the crypto financial services company Bitcoin Suisse, according to the announcement.
Moreover, a point-of-sale solution developed by Bitcoin Suisse has already been installed in the Zermatt town hall. This will enable the residents to pay their taxes to the local authorities. Mayor Romy Biner-Hauser said:
After the city of Zug, Zermatt is now the next Swiss municipality to accept the cryptocurrency as an official means of payment. The city’s 5,400 residents will be able to pay their bills for taxes and other government services, such as work permits, using the cryptocurrency.
Bitcoin Suisse to Convert Bitcoin into Swiss Francs
Additionally, it is worthy of note that the Swiss authorities will not directly receive the tax payments in Bitcoin. Rather, Zermatt’s residents will be able to pay their taxes in BTC to Bitcoin Suisse. In turn, Bitcoin Suisse will convert taxes paid in Bitcoin into the corresponding value of Swiss francs. Thereafter, the crypto firm will transfer the amount in CHF to the municipality’s bank account, per the announcement.
This development echoes the recently announced partnership between Bitcoin Suisse and Worldline/SIX Payment Services. This is an indication that cryptocurrencies are becoming more common in everyday life. However, local and national level push can demonstrate solid collaboration between the public and private sectors in the expanding crypto-financial services industry. Mayor of Zermatt also said:
“An innovative and pioneering spirit is one of the trademarks of Zermatt. We are happy to support residents and provide the solutions they need. Moreover, everyone talks about cryptocurrencies and blockchains, and if you don’t try them, you don’t get smarter.”
Even though the mayor doesn’t expect many Bitcoin transactions, she is curious about new technology. Moreover, Switzerland is not the only country that continues to expand its crypto-financial services sector in terms of Bitcoin tax payments. The Canadian city of Innisfil in Ontario also accepted cryptocurrencies from its residents to pay property taxes from last year. This is the first Canadian city to adopt cryptocurrency.
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