Switzerland Approved the First Blockchain-Based IPO, Municipality Introduces Bitcoin POS
TechnologyBit News Today2 min read
In a sign of growing mainstream acceptance, a Swiss municipality has begun accepting Bitcoin as payment for various services and fees at its offices. Residents in the Zurich canton's Uitikon municipality can now pay with Bitcoin for municipal services, including a number of town hall activities and registrations. Uitikon is the first municipality in Switzerland to introduce Bitcoin payment points.
The Swiss municipality accepts Bitcoin payments through a point of sale (POS) system provided by innovation hub and startup-industrial complex Crypto Valley. The partnership enables Uitikon to accept Bitcoin by instantly converting the cryptocurrency into Swiss Franc (CHF) as the final settlement.
Crypto Valley's POS software uses a third-party service to convert the Bitcoin payment to Swiss Franc that is then sent to the municipality's bank account. The transaction, which includes the conversion of the cryptocurrency to FIAT, is accomplished in seconds. The solution is intended for public administration, telecommunication, logistics, and financial services, according to Crypto Valley. ## Blockchain-Based IPO Nets Funds for Startup
A Swiss startup attracted a major investment through the country's first blockchain-based initial public offering (IPO). The young company Solce, which is based in Crypto Valley, closed its token sale in mid-January. Solce raised an undisclosed amount from private investors.
The startup, which has been around for only a year, focuses on decentralized energy trading. Solce wants to disrupt the energy market by allowing consumers to trade energy directly with each other on a peer-to-peer network. It is using blockchain technology to create an online marketplace where energy producers and consumers can trade energy.
As part of its funding push, the company launched an online token generation event (TGE) - a cryptocurrency-based version of an IPO. Solce's capital raise was for both utility tokens designed to facilitate transactions of energy as well as security tokens that would give investors a stake in the company.
Switzerland is a favorable environment for blockchain-based investment capital infusion. The country passed a constitutional amendment cementing the legal basis for blockchain technology. It also introduced a new kind of token called a payment token - a digital unit of value that can be used for payment, but does not grant voting rights or are linked to company shares. ## What It Means for Crypto
The developments are further evidence of growing crypto adoption in Switzerland. The country has become one of the top environments for blockchain companies to set up shop. Weltwoche, a Swiss financial news magazine, has called Crypto Valley a rule-breaker in the global blockchain industry.
For startups, the developments are an encouraging sign. They indicate that regulations are starting to take shape in a favorable way. Solce is not the first blockchain startup to raise capital, but it is among the largest. Its success is likely to encourage other companies to look at raising investment capital through cryptocurrency.
