Liechtenstein is considering to accept bitcoin for government payments

[Accardo]

The bitcoin community in Europe is awed to hear the intention of the Liechtenstein local lawmakers about the integration of bitcoin for government payments. They intend to swap the bitcoin into Swiss franc immediately after it arrives in their wallet. According to Daniel Risch, the PM, and Finance Minister, he stated that the ruling body could allow its citizen to utilize bitcoin for government payments, but it's not sure if they'll take in bitcoin as legal tender, he didn't mention it.

Hence, regarding the network congestion happening recently, bitcoin communities lament that the Liechtenstein government has not experience network congestion, before the bitcoin gets converted into Swiss Franc it'll take time and they'll pay higher fees too. Hopefully, the whole dust transaction gets decongested before Switzerland concludes its decision of integrating bitcoin as a means of paying government fees. If these countries, adopt bitcoin payment it'll boost bitcoin, but if the mempool busy traffic continues it can demoralize them from taking this step. 

https://cryptopotato.com/liechtenstein-could-embrace-bitcoin-as-a-payment-method-for-gvmt-services-says-pm/

[Plaguedeath]

Nice to see if this proposal will come true, although this mean the Liechtenstein's citizens can pay directly the government service with Bitcoin, but it don't need to make Bitcoin to become a legal tender because there's will be a strict regulation they need to follow. Just don't ban Bitcoin and let the citizens know if they're not against of Bitcoin usage, it's enough,

[sokani]

This is really nice coming from the Liechtenstein’s government. They must have seen what is going on in El Salvador, and also their neighbouring country Switzerland. How the local town Lugano had adopted their own token LVGA as a legal tender in March 2022 and also the acceptance of Bitcoin and USDT as means of payment and so far the results have been encouraging. Even if the government do not get to make Bitcoin a legal tender but accepting bitcoin as a mean of payment would help businesses to thrive and create a lot of opportunities for the country.

[Obito]

Nice to see if this proposal will come true, although this mean the Liechtenstein's citizens can pay directly the government service with Bitcoin, but it don't need to make Bitcoin to become a legal tender because there's will be a strict regulation they need to follow. Just don't ban Bitcoin and let the citizens know if they're not against of Bitcoin usage, it's enough,

Yeah, no big difference if they consider bitcoin as a legal tender rather than just make it as a means of payment. Making bitcoin a legal tender only confirms it's legitimacy so definitely a no big deal. Another win for crypto and this one is much more better since the government isn't losing anything here since they're going to quickly convert it to hard currency.

[eightdots]

It's nice that Bitcoin is going through these phases. I don't know where this topic will lead in Liechtenstein, but it's good news that it's even discussed. It is too early for it to become a legal payment instrument. Of course, some states or institutions will switch to this payment method over time. What needs to be done now is to remove the obstacles in front of it. Everyone should be able to do whatever they want with bitcoin without encountering any obstacles. When this happens, the other things we've already talked about will gradually come true.

[_BlackStar]

It is always great news when bitcoin becomes the currency that governments from one country to another will adopt. It's clear to me that this will drive more power for a better future for bitcoin as an alternative currency should fiat stop helping society so much because of its banks and centralized systems. Bitcoin is worth considering, but really my concern may have been raised and might say tough if the dust attack continues to fill the mempool.

Do any of you think that dust attacks/ ordinals attack are a threat to slow bitcoin adoption growth?

[Frankolala]

This is good news from Lichtenstein government to encourage the adoption of bitcoin. It is a big win for the bitcoin community as this will increase the rate of adoption of bitcoin and citizens will enjoy financial freedom and other attached benefits to using bitcoin.

It doesn't mean that bitcoin must be adopted as a legal tender before it can be used freely for payment by its users. As long as the government has accepted the adoption to use it as an alternative payment method,it is fine because there will be no restrictions on bitcoin. The government of Lichtenstein has seen that bitcoin is a store of value and can resist inflation and they know how bitcoin will help its citizens.

[mendace]

Many governments don't say this publicly but I'm pretty sure they're hoarding bitcoin so they don't put themselves at a disadvantage to others, and Liechtenstein's stating this could drive others out, high FEE won't stop anything especially when movements million.

[aoluain]

This is interesting, Liechtenstein has been Bitcoin friendly for a while now and this move
is just another step possibly to accepting Bitcoin as legal tender, who knows...

Its a very small country but they are very welcoming to Bitcoin.

Binance and Kraken exchanges are based there and some banks in Liechtenstein have
been offering crypto services for a few years and now the government are taking a
positive and direct approach.

[boyptc]

That's what others should be considering if it's about accepting Bitcoin as payments for their government payments and obligations.

They don't have to hold it and be wary about its volatility but they can convert that quickly by using such third party service that they are aware of.

It's just a matter of choice for them on which service they're going to use for them to have this adopted by most of their citizens. This acceptance is about maximizing most of the payment systems and methods that their citizens might know.

[big_daddy]

It's great to see Liechtenstein considering integrating Bitcoin for government payments! But, it looks like they'll be converting it into Swiss Franc right after they receive it. Some folks are worried about the recent network congestion issue, and how it might affect the transaction time and fees. Hopefully, the congestion issue gets resolved before Switzerland decides to follow suit. It would be a real boost for Bitcoin if more countries start adopting it, but if the traffic remains congested, it might discourage them. Fingers crossed for a smooth transition!
And I would like to see integrations of Bitcoin without the conversion in any fiat currency, just Bitcoin!

[darkv0rt3x]

I'm happy that there is a bit more attention in Europe to Bitcoin. Small countries are more like to take these small actions that most of bigger countries as they are more dependant of capitalism and socialism and also on other countries from EU.

[dzungmobile]

They won't pass that bill easily and might not do that in future.

If there is anything they are ready to approve as a mean for government payments, they will do it with their CBDCs first.

Bitcoin is a threat for their fiat currencies, CBDCs and governments won't initiate something that will make future of their CBDCs looks worse. At least with governments, they don't consider Bitcoin as something neutral and harmless for their fiats and CBDCs.

[franky1]

just like how "mainstreaming" hyped up turning bitcoin from a private property  into a currency resulted in regulators being able to control aspects of crypto

this topics conversation is trying to hype up how a EU country is implementing something .. which end result would be to make crypto taxable..

too many people pump the hype but never understand the consequences.

understand what they mean by paying for government services(tax)

imagine it this way do you really want to have to create transactions where part of the destination addresses is a tax office address. where you have to pay sales tax or cap gains tax on transactions

EG
have 1btc you bought at $6 in 2012 . but because you never used it its still sat as a utxo realised value of $6 but then you move it 11 years later at $29k knowing you have to pay 30% of it to a tax office just for moving it becasue you have realised 28,994 of value increase so have to send them 0.3btc just to move your coin

yep once they are apply tax acceptance law to crypto they will soon after, be wanting to grab tax revenue from it

[Fiatless]

I might not know the real consequences of this policy by the government of Liechtenstein but it is good for bitcoin publicity and awareness. They might have some negative intentions but those restrictions can be surmounted. It will only take time for bitcoiners to devise a way to invade such privacy or centralization issues.

Hence, regarding the network congestion happening recently, bitcoin communities lament that the Liechtenstein government has not experience network congestion, before the bitcoin gets converted into Swiss Franc it'll take time and they'll pay higher fees too. Hopefully, the whole dust transaction gets decongested before Switzerland concludes its decision of integrating bitcoin as a means of paying government fees. If these countries, adopt bitcoin payment it'll boost bitcoin, but if the mempool busy traffic continues it can demoralize them from taking this step. 

We all hope that this traffic issues is settled because it could actually serve as a discouragement. But the government of Liechtenstein should understand that the Bitcoin space has its challenges so if they want to adopt Bitcoin for payments, they should also be willing to be part of the solution to the problem. This issue will not last for a long time, I guess.

[Accardo]

They won't pass that bill easily and might not do that in future.

If there is anything they are ready to approve as a mean for government payments, they will do it with their CBDCs first.

Bitcoin is a threat for their fiat currencies, CBDCs and governments won't initiate something that will make future of their CBDCs looks worse. At least with governments, they don't consider Bitcoin as something neutral and harmless for their fiats and CBDCs.

I don't see bitcoin as a threat to fiat currency, this new adjustment in Liechtenstein's local law doesn't change much to an extent of being a treat to their fiat currency. It's just an additional payment method and a way to accept citizens who own bitcoin to pay their dues using that medium. The Government may implement a fee for themselves too aside the one meant for bitcoin miners. For instance a fee of 20$ can be $25 for bitcoin payers. And they'll quickly change that to fiat currency helping the network in a way and at same time helping the growth of local peer2peer traders who change bitcoin to fiat. One good news about it is that it'll disseminate bitcoin to a wider public of citizens in that country.

[Lucius]

Liechtenstein is even defined as a microstate considering its area and population, and is not part of the European Union or the Eurozone. Even if they accepted Bitcoin in any form, it would not have any significant effects, because in some parts of Switzerland and some other EU countries you can pay bills, taxes and buy almost anything you can imagine with Bitcoin - and you don't even need to pay tax on profit if you keep BTC for more than 1 or 2 years.

[justdimin]

They won't pass that bill easily and might not do that in future.

If there is anything they are ready to approve as a mean for government payments, they will do it with their CBDCs first.

Bitcoin is a threat for their fiat currencies, CBDCs and governments won't initiate something that will make future of their CBDCs looks worse. At least with governments, they don't consider Bitcoin as something neutral and harmless for their fiats and CBDCs.

I don't see bitcoin as a threat to fiat currency, this new adjustment in Liechtenstein's local law doesn't change much to an extent of being a treat to their fiat currency. It's just an additional payment method and a way to accept citizens who own bitcoin to pay their dues using that medium. The Government may implement a fee for themselves too aside the one meant for bitcoin miners. For instance a fee of 20$ can be $25 for bitcoin payers. And they'll quickly change that to fiat currency helping the network in a way and at same time helping the growth of local peer2peer traders who change bitcoin to fiat. One good news about it is that it'll disseminate bitcoin to a wider public of citizens in that country.

These were the people who would go against credit card payments or bank wire transfers as well I suppose. It's just a method of payment and that's it, doesn't mean anything has to change, it may or it may not change but that's not the point and we are going to end up with near similar results without a doubt. I believe that we are going to end up with something much better overtime and we just need to end up with these type of nations and governments that support it. This idea alone is a proof that they are pro-crypto.

It hasn't happened yet obviously, they are just considering it and they may end up deciding they won't do it as well, but even the idea of it and being considered is enough to actually make it work. It would be better if they start doing it, but even the idea is enough.

[Fivestar4everMVP]

Well, ive always been of the opinion that the best is yet to come for bitcoin, even if this doesn't end up working out, I still have full trust that bitcoin would one day become a major currency globally..

And yes, the network congestion which has resulted to a high transaction cost is indeed a hindrance and could cause bitcoin to loose opportunities of adoption as this one, but then, let's just hope (like the op said) that the network get decongested before the government makes its final decision.

[Doan9269]

Many governments don't say this publicly but I'm pretty sure they're hoarding bitcoin so they don't put themselves at a disadvantage to others, and Liechtenstein's stating this could drive others out, high FEE won't stop anything especially when movements million.

You're right in your opinion as Liechtenstein Prime Minister has developed interest on bitcoin investment through the State reserved assets, bitcoin is not what we deny of anymore because it is legally acceptable as a means of payment in any part of the world, being a decentralized digital currency makes it more outstanding and more applicable in various economic aspects of life, the current high transaction fee is never a distraction to wether to give interest in bitcoin adoption or not, everything works base on the understanding of what bitcoin is and how it has come to be a game changer of the financial economy, we look forward for more countries adoption this year as a legal tender.