Zug is a beautiful place based in Switzerland with snow-dusted mountains surrounded by the orange glow of the sun and same picture mirrored on the beautiful lake. A Washington resident, Jeremy Epstein visited the spiritual home with 40 traveling companions to find out the depth of the relationship between Zug and cryptocurrencies, as Zug has renowned itself as the crypto valley.
The economy minister of Switzerland, Johann Schneider-Ammann is aiming to transfer the land into “crypto-nation” through its wide usage of virtual tokens among the people and Zug representing as the capital of that nation.
With the motive as mentioned above in mind, the government officials are leveraging the rules for crypto-based industries,contradictory to other countries. The industries manufacturing crypto related products such as hard drives, offline in cold, dry, secret sites complete with rapid-response teams are promoted. The friendliness with the emerging technology can be witnessed in Zug where you will find “Bitcoins are accepted here” stickers all around.
As per PwC reports, the country accumulated a wealth of total $5 Billion in the last quarter of 2017 by ICOs Fundraising. Out of 10 largest ICOs, four were based in Zug.
The kinship of Zug with virtual tokens began in the year 2013 when the Ethereum Foundation, second in the virtual token list, based itself here. The curious nature to explore the emerging technology forced the lakeside partners of Zug to allow five blockchain companies to flourish in the business center. The number kept on increasing and reached to 70 in two years of time span. In an interview with the economist the mayor of lakeside, Dolfi Mueller stated: “They landed like flying saucers, curiosity and being open to the world have brought us much wealth in the past.”
The secretary of International Finance of Switzerland, Jörg Gasser believes that the Bitcoin Bubble will not burst and even if this happened, the investors would ask for regulations. The emerging technology has a wide scope and should not demise.
For Mr. Gasser, the priority lies in maintaining the Financial image of the country. FINMA, the national regulator of Switzerland is conducting its investigation to detect the law breachers practicing activities such as money laundering. To maintain its position in the prevailing industry, the FINMA issued various guidelines regarding regulations and legislation. It also warned some tokens to be treated as securities.
With day by day enhancing trend of virtual tokens, the hubs offering favorable surrounding will attract crypto-based businesses. The inherited feature of digital coin, i.e., decentralized transactions may weaken the cluster unless Zug upholds to guard them.