The city of Zug, Switzerland, has announced it will pilot a bitcoin payments project that will allow local citizens to pay for public services using digital currency.

Zug, a well-known Swiss financial hub long associated with the country’s tax haven reputation, kicked off the initiative during a local government hearing on 3rd May. Payments will go live on 1st July and run through the rest of the year, the city said in a statement.

The move was announced on the city’s official website, which characterized the initiative as a means to assess the efficacy of accepting bitcoin for public obligations that cost 200 francs (roughly 0.44 BTC at press time) or less.

The city explained:

“The pilot project of the city government is initially limited to a limit of 200 francs on chargeable services the residents of the city train. The end of 2016 [we will conduct] an analysis of lessons learned. Then…the city council [will decide] if bitcoins and most other digital currencies are to be accepted as payment for other urban services in the future.”


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