Another City in Switzerland has Approved Bitcoin as a Tax Payment Alternative

The city of Zermatt, Switzerland, the dwelling place of the renowned Matterhorn, has become the second region in Switzerland to begin accepting tax payment in Bitcoin.

The administration of the Swiss city has entered an agreement with prominent Swiss-based cryptocurrency financial services enterprise Bitcoin Suisse for this undertaking to be possible.

Reason for the Alliance
Bitcoin Suisse recently announced that Zermatt began accepting Bitcoin as a suitable means for paying taxes on the 28th of January.

The agreement with Bitcoin Suisse will help Zermatt’s authorities convert taxes paid in Bitcoin into Swiss francs through the firm which subsequently transfers the amount in fiat to the city’s reserves.

Zermatt’s Residents Can Now Pay Their Taxes Online Using Bitcoin
Based on the report, taxpayers in the region can now pay their taxes in Bitcoin via POS services located in Zermatt’s town hall or through designated online portals. Nevertheless, to pay through the online platform, the taxpayer will be mandated to consult with the Zermatt Tax Office (ZTO) for a cryptocurrency payment solution.

The Mayor of Zermatt, Romy Biner-Hauser, said in a recent interview that the payment solution was borne as a result of intensified demand for a cryptocurrency (Bitcoin) payment alternative. He added that the administration was completely devoted to fostering creativity and effectiveness in creating solutions its residents rightly deserve.

The city Zug was the first region in Switzerland to begin endorsing Bitcoin payments as far back as 2016. The crypto-oriented city started with endorsing Bitcoin payments for public infrastructures like utilities. However, the payment was limited to 200 francs worth of Bitcoin only.

While Switzerland keeps breaking down walls, like cryptocurrency-based tax payments, that restricts the development of the cryptocurrency sector in the country, some nations deem such options as extremely harmful given Bitcoin’s current volatility.

On the 8th of January, lawmakers in the U.S. rescinded on a bill that would have authorized the acceptance of cryptocurrencies as a tax payment alternative for state agencies, claiming that such undertaking was too detrimental to authorize given Bitcoin’s current instability.