The country of Switzerland is known around the world for many things: chocolate, watches, army knives, and banking to name just a few. However, it might be about time that we add cryptocurrency & blockchain technology to that list.

In 2017, the Ethereum Foundation decided to set up their headquarters in Zug, Switzerland. The decision largely came down to the combination of Zug's favourable corporate tax rates, their clear rules around cryptocurrencies, and their history of accepting Bitcoin payments from their citizens. Obviously, with Ether now being the number 2 biggest cryptocurrency in the world - this caused quite an impact. However, the Ethereum Foundation is far from the only crypto player in town.

Also in 2017, the Crypto Valley Association was set up to provide advice and support to crypto and blockchain businesses interested in setting up shop in the area. Today, there are over 400 businesses who are part of the CVA, showing that in Zug, crypto is indeed here to stay.

So what lessons can other cities or states take from Zug?

Lesson #1: If you embrace it, they will come

By embracing cryptocurrency and creating clear and specific rules for how businesses can operate, Zug attracted both start-ups and established companies to their region. Companies knew the rules when entering Zug, which helped establish clarity and trust between companies and government. Indeed, the canton of Zug hosts conferences numerous times per year, where even more companies, investors and individuals can come to see what all the fuss is about.

Lesson #2: You can benefit your citizens by embracing crypto

Currently, Zug allows its citizens to pay for certain municipal services with either Bitcoin or Ether. By offering these services, Zug helps to legitimize Bitcoin and cryptocurrency for its citizens. Whereas before, someone might have viewed Bitcoin with scorn or distrust - now that same person sees it as a perfectly legit and legal way to conduct business. If Bitcoin and blockchain technology are indeed the way of the future - would a region not want their citizens to be early and informed adopters? I'd say yes.

Lesson #3: It inspires innovation

Paying for municipal services with Bitcoin or Ether is far from the only blockchain inspired perk for citizens living in Zug. On a local level, there are plans being worked on to use blockchain technology for voting in local elections. Crypto companies based in Zug are currently working on a wide variety of projects, from asset management to data storage, and more. Evidently, by embracing these companies - Zug has positioned itself at the forefront of a new 'Silicone Valley' - one centred around blockchain technology.

It is my hope that more regions around the world will follow the Zug model, bringing more opportunity for innovation and advancements in blockchain and crypto development worldwide.