Take A Close Glimpse into Switzerland’s Own Version of Silicon Valley, the ‘Crypto Valley’
Since the conception of Bitcoin almost 10 years ago, cryptocurrencies and the technology behind it has drawn in investors and businesses from every corner of the world. The booming industry has seen billions and billions of dollars’ worth of investments since its conception.
The technology behind crypto, blockchain, has proven that if utilized correctly, it could highly benefit current and coming businesses by forsaking everyday inconveniences and building faster, more reliable and efficient networks.
The most important factor in cryptocurrencies and Bitcoin in general is that the digital currencies are decentralized, meaning that no authority or government can be in full control.
Cryptocurrency businesses as well as multi-national companies are flocking towards the small town of Zug- located in Switzerland just outside of Zurich- due to its low business tax, which stands at only 14 percent. As of late, many medical-oriented businesses have also been making their way towards Zug due to incredibly low taxation and beneficial regulations.
Chief Operating Officer of Shapeshift, one of the digital exchanges located in Zug, said the company chose to bring its business here because of the town’s welcoming atomosphere. This is in contrast to many other nations where rules and regulations have been usually unclear.
Most of the booming success and adoptive nature of Zug towards cryptocurrencies can be owed to Niklas Nikolajsen, founder of Bitcoin Suisse. The CEO of Bitcoin Suisse spoke about how Niklas virtually educated the government on cryptocurrencies and how they work, and that many of today’s investors owe their knowledge and expertise to Niklas.
Once consulting with Niklas proved to be educational and beneficial, the town implemented clear guides and protocols on how companies and others involved in digital assets would be received.
The second most valuable digital currency after Bitcoin, Ethereum, and its producers were drawn to Zug after the town announced its new regulations regarding cryptocurrencies. The Ethereum Foundation was also part of the many businesses and investors that Bitcoin Suisse consulted with, mainly its ICO.
According to the president of the CVA, the Ethereum Foundation set off a snowball after its conception in the town, setting up a whole new system for many other businesses to open up, including law agencies, many startups, and even universities. He also spoke about how the Crypto Valley was a worldwide leading environment for blockchain tech due to their tackling every angle of the new-age technology and combining all possible business ventures together.
As initial coin offerings provide a means for startups to sell digital currencies on a global scale, this year alone saw a nine-billion-dollar boost thanks to ICOs.
The association currently serves as a home to over four hundred different businesses of all types, from startups to major companies like KPMH. He also credits the success of the association to a huge boost in initial coin offerings from the previous year. Due to the success of the association and the continuous booming growth of the Crypto Valley, more businesses are making their way towards the small town of Zug in hopes of profit.