Bitcoin for tax payments is getting widely popular. Recently, the Swiss Municipality of Zermatt and Bitcoin Suisse partners. The joint venture aims to allow residents of Zermatt to pay their taxes with Bitcoin. This makes Zermatt the third municipality in Switzerland to accept crypto for tax payments. In addition, municipalities of Zug and Chiasso also accept crypto for tax payments.

Zermatt is a small town with a population of nearly 6,000. Using Bitcoin Suisse’s point-of-sale solutions, installed in the Zermatt town hall, residents can pay local taxes in bitcoin. However, for online payments, they have to apply to the Zermatt Tax Office for a crypto payment solution.

Bitcoin Suisse to Convert Bitcoin into Swiss Francs

As per the announcement by Bitcoin Suisse, Zermatt started accepting bitcoin as a means of payment for local taxes and transactions from 28th January 2020 onwards. The partnership with Bitcoin Suisse, as a result, is allowing taxpayers to convert their bitcoin into Swiss francs (CHF). Later, it will transfer fiat currency to the municipality’s bank account.

The Mayor of Zermatt, Romy Biner-Hauser says “An innovative, pioneering spirit is one of the trademarks of Zermatt, which is why we are happy to support residents in providing them with the solutions they require.”

The city of Zug became the first in Switzerland to accept bitcoin payments in 2016. Bitcoin offers instant, secure, and low fee payments. Therefore, it is no surprise that some governments in the world are beginning to accept bitcoin for tax payments. If tax payments utilizing crypto become popular in Zermatt, Zug, and Chiasso, perhaps one day, entire countries will accept bitcoin for tax payments.

While Switzerland continues to expand its crypto-financial services industry in terms of bitcoin-powered tax payments, some global authorities have recently deemed such an option too risky. This is probably due to Bitcoin’s high volatility nature. Lawmakers in the United States’ New Hampshire state legislature retracted a bill on Jan 8 that would have allowed state agencies to accept crypto as payment for taxes. According to the lawmakers, the initiative was “inexpedient to legislate” as Bitcoin’s price is not stable.