Liechtenstein is considering Bitcoin as a legal tender

Liechtenstein is considering Bitcoin as a legal tender


The Crypto Revolution is in full swing, and governments worldwide are trying to adapt to the changes in the financial world. Now, the small principality of Liechtenstein has also spoken up and is considering allowing Bitcoin as a legal tender. According to Prime Minister Daniel Risch and Finance Minister Mauro Pedrazzini, citizens may be able to pay for government services with Bitcoin in the future.

If Liechtenstein does indeed take this step, it would be one of the first countries in the world to recognize cryptocurrencies as an official form of payment. So far, only a few countries accept Bitcoin and other cryptocurrencies as legal tender, including El Salvador, which became the first country in the world to recognize Bitcoin as legal tender, and the West African country of Senegal.

Liechtenstein, known for its crypto-friendly policies, introduced comprehensive regulations for digital assets with the “Liechtenstein Blockchain Act” in 2019. Additionally, the country, along with Switzerland, holds the reputation of being one of the most significant crypto financial centers in Europe. Following the implementation, Bitcoin payments in Liechtenstein are expected to have immediate convertibility into the country’s official currency, the Swiss Franc.

However, it is still unclear when Liechtenstein will introduce Bitcoin as a legal tender. The country’s government still needs to pass relevant laws. Nevertheless, it is a significant step towards increasing acceptance of cryptocurrencies and could encourage other countries to follow suit.

In conclusion, Liechtenstein’s move towards recognizing Bitcoin as legal tender could be a crucial milestone for the crypto industry. It demonstrates that governments worldwide are increasingly engaging with the topic of cryptocurrencies and are willing to face the challenges of the future.

Liechtenstein is considering Bitcoin as a legal tender
Binance halted Bitcoin withdrawals twice in one day

Binance halted Bitcoin withdrawals twice in one day

Binance, the world’s largest cryptocurrency exchange, had to suspend BTC withdrawals twice within 24 hours last week due to alleged network congestion of Bitcoin. A similar situation occurred in February when Binance had to halt Bitcoin withdrawals for several hours, leading to a massive price drop. However, this time there were no impacts on the Bitcoin price as the market had already been declining in recent days.

The network congestion of Bitcoin reportedly attributes to the hype surrounding the novel BRC-20 token issued through the well-known Ordinals protocol. Many believe that the demand for this token congested the Bitcoin network by initiating a large number of transactions. At one point, there were reportedly over 400,000 unconfirmed transactions in Bitcoin’s mempool.

Binance quickly responded to the situation by temporarily disabling the withdrawal function to avoid further network congestion. The company also emphasized that they never compromised the security of customer funds. Meanwhile, they reported that the withdrawal function is functioning smoothly again, and they have brought the situation under control.

The network congestion of Bitcoin is another example of how the growing popularity of cryptocurrencies can lead to problems. Scalability remains a central issue in the crypto industry for Bitcoin and other blockchain networks. Therefore, companies like Binance must collaborate closely with the developers of the underlying blockchain networks to ensure the smooth operation of their platforms and the protection of their customers.

Overall, this incident highlights the importance of being cautious when using crypto platforms and staying informed to avoid unnecessary risks.

Binance halted Bitcoin withdrawals twice in one day