Bitcoin and the Crypto Valley on Lake Zug

A number of companies in Zug want to revolutionize the monetary system. The city welcomes them and is introducing the virtual currency Bitcoin itself.

‍

Zug becomes a Bitcoin pioneer

Starting from July 1st of this year, fees up to 200 Francs can be paid with Bitcoins at the residents' registration office in the city of Zug. Thus, Zug is the first authority worldwide to introduce the virtual currency – a coincidence? In the last three years alone, the city has seen an increase of over 15 companies that deal with digitized financial services (FinTech) and blockchain, the technology behind Bitcoin. Bitcoin Suisse AG is also part of this. Referring to the Silicon Valley in California, people are already talking about the Crypto Valley at Lake Zug.

The idea behind Bitcoin

The virtual currency was created in 2009 as a response to the financial crisis. Unlike regular currencies, Bitcoin is a decentralized monetary system and independent of national currencies, central banks, and other financial institutions. However, the cryptocurrency is not without controversy and is by no means risk-free. For example, users are not protected against losses in the event of technical problems and fraud. At the beginning of 2014, Mt.Gox, a Bitcoin trading platform, was robbed of “coins” worth several hundred million Francs in a hacker attack. Nonetheless, the distribution of the currency continues to increase steadily. Currently, up to 200,000 transactions are conducted on peak days, with digital coins totaling 3.5 billion Francs in circulation. It remains to be seen whether Bitcoin will revolutionize the financial industry as Uber has revolutionized the taxi world.