Switzerland has opened its doors to digital currencies in many ways, especially Bitcoin, particularly with favorable cryptocurrency policies. However, the European country has recorded slower economic growth recently, a development that crypto market onlookers believe Bitcoin could solve. Bitcoin technology firm JAN3 took to X to break down the possibilities for the Central European country if it decides to follow in El Salvador’s footsteps and adopt Bitcoin as a legal tender. For existing Bitcoin users in the country, the asset is tax-favored, as there has been no capital gains tax for private transactions or VAT on transactions for Bitcoin holders since 2018. Regarding sustainability, Switzerland’s current energy structure could help smoothly integrate Bitcoin into the country’s financial system. With its energy mix relying on renewable energy, with 60% stemming from hydroelectricity, sustainable mining could be achieved, especially during winter when power production outpaces demand. “With 15,000 MW of energy capacity (60% from hydro), Switzerland has the potential to scale sustainable #Bitcoin mining. It can do this by surplus renewable power that could help stabilize the grid while unlocking new revenue streams for the country.” – JAN3 . Is Switzerland on its way to adopting Bitcoin as legal tender? While the Swiss government has yet to make any official statement regarding Bitcoin as a substitute for the Swiss Franc, its national currency, multiple Bitcoin—and crypto-friendly developments have been implemented in the region over the years. A rise in Bitcoin adoption has resulted in 11% of the Swiss population, around 1.6 million Swiss people, holding Bitcoin. Bitcoin and blockchain-related activities have also been sustained in physical locations like the canton of Zug, also known as Crypto Valley. In 2022, a Plan B initiative was launched in Lugano to host over 260 Bitcoin merchants. Although the Swiss bank recently rejected Bitcoin as an asset for its reserves over volatility concerns, the growing demand for the asset amongst Swiss nationals could continue to drive integration across different sectors.
