Switzerland: The New Hub for Cryptocurrencies & Blockchain
With the massive expansion of the blockchain industry, there have been many contentions for the coveted No. 1 position as a global hub of decentralization. Dubai and Singapore have been seasoned players in this aspect, but we’re looking at Zug today – an ancient medieval city in Switzerland striving to be the focus of cryptocurrencies.
The famous Swiss 1934 laws are well known: revealing the names of account holders in Swiss banks is considered to be a criminal act. Millions of people have taken advantage of this law to evade taxes year on year. That was until 2008, when the U.S. Federal Bureau of Investigation (FBI) scrutinized a multi-billion dollar tax evasion case involving the Swiss bank, UBS. Today, Switzerland discloses account holder information solely for tax-related endeavors.
Establishing The Crypto Valley
But the country seems to be launching a new chapter. In this age of cryptocurrencies and blockchain technology, Switzerland is already harboring a new “Crypto Valley” in Zug. Similarly, news came from the Chiasso Mayor in September 2017 indicates that tax payments will be allowed to be made in bitcoin starting January 2018. The limit on these payments is currently set at 250 CHF (Swiss francs). In fact, Chiasso has dubbed itself as the “cryptopolis” of the world, as a direct competition to Zug.
Today, the Crypto Valley is home to more than 20 digital currencies. In this flourishing atmosphere, however, there are some who suspect the legitimacy of this cash. Even though the Swizz legislation might appear pro-crypto, there are still many hurdles to face before one is able to take advantage of the conducive space. The cost of living in the country is incredibly high, and immigration laws are strict.
The world is fast advancing with every technology, and Zug is trying to keep pace with the same. The mayor and his governing body are transparent about the fact that they don’t know a lot of thing about the blockchain, but they’re working to get there.
One thing’s for sure – the medieval city has certainly commanded the world’s attention. It will be interesting to note how Zug will shape the crypto industry.