Why cryptocurrency business moves to Switzerland?

With someone's light hand the Swiss city of Zug is called a Crypto-valley. Indeed, it can be compared to California's Silicon valley, because the city has become extremely popular among cryptocurrency companies.

Silicon valley, birthplace of many technology start-UPS. The area got its name from the silicon used in computer chips. Similarly, the Crypto valley becomes the home for many cryptocurrency companies and got its name from the type of business that it attracts into its territory: the crypto business.

Why cryptocurrency companies choose to locate a business that is Zug, and what makes this city so attractive? This was stated by the head of business development of the company Monax (former Eris Industries), Swiss citizen, Brian. (Brian Crain):

"Mainly because of taxes. Many of the startups are here because they spend crudely, and the Swiss authorities look at it very openly. This first step made the Ethereum, and the project was able to secure approval from the state authorities, so they don't have to pay taxes on the income they receive. Later their example was followed by many other companies."

On the question of what gives cryptocurrency company in Zug, senior project Manager Dash Robert Vico (Robert Wiecko) said:

 "I believe that Switzerland is the so-called crypto valley, mainly because of low taxes. The Swiss traditionally maintain the privacy, the country has a stable economy and politics.

All these factors are very important and attractive for many types of businesses, and for small startups (usually low cost) at a very young industry, such as cryptonote, it may become a major success factor. Low taxation and the absence of restrictive measures contribute to development and creativity. The funds that would be spent on taxes and licenses, now can be used on research and development.

The fact that cryptocurrency is considered in Switzerland foreign currency, makes the whole operation much easier - the company of the cryptocurrency industry just needs to comply with existing legal and tax regulations. It is very convenient and contributes to the transparency of the process.

Being stable, safe and supportive environment for innovative technology and creative startups, Switzerland is the best fit under the definition of Crypto-valley. It also serves as a good advertisement for the country as a place favorable to the development of innovative business. The advantages are indisputable".

Bitcoin takes only the state

As for the Swiss economy... it is logical to assume that thanks to the Crypto valley will develop a national cryptocurrency economy, but it is not so. From 1 July 2016, a municipality of the Canton of Zug has launched a program through which citizens can pay your bitcoin bills.

But, besides the possibility of payment by bitcoin utilities, the rest of the bitcoins not widespread. And even the endorsement of Bitcoin by the government of Zug is only a one-year pilot project. No one can guarantee that after the end of the experiment, the government will continue to accept bitcoins.

On the question whether bitcoins are a local company and the town in the vicinity of Zug, crane replied,

"Actually, I'm not sure, as I don't spend much time there. As far as I know, the local government accepts bitcoin for certain services. But in General, sure there the same as elsewhere, bitcoin is not very many people."

A quick search on the Internet shows that the situation with bitcoin in Switzerland is a little different from other countries. The number of companies accepting bitcoin as payment on the surrounding Zug area is very small. Despite the fact that Crypto-valley is a Mecca for owners of cryptocurrency companies, for consumers of cryptocurrency safe heaven still exists.

Many wonder why, despite the obvious benefits, which carries a cryptocurrency, most people do not feel comfortable using Bitcoin. You have to remember that people feel comfortable using the services of well-known companies, common currencies and services.

Take, for example, McDonald's – this franchise has chains around the world, and despite the fact that their food is not the best quality, people feel comfortable there, as they consider it reliable. When consumers see the logo of McDonald's, they know what service they will receive. At the moment when the citizens are faced with Bitcoin, they don't recognize the logo and have no idea what services they can get, so many of them do not know how reliable Bitcoin.