The Portuguese energy company Luzboa will start accepting bitcoins as payment for electricity using the new Bit Spot payment system.
Luzboa President Pedro Morais Leitão said the new payment method for electricity will be available as early as this month. In the coming days, Luzboa will create a Bitcoin wallet to accept payments in cryptocurrency via the Bit Spot system. The company plans to immediately convert the received bitcoins into euros to protect itself from the unstable exchange rate of BTC. Leitao added that despite the volatility of cryptocurrency, it’s ready to go on a certain risk.
The company’s initiative aims to “capture a niche in the market” rather than force all of its customers to switch to bitcoin payments. Leitau explained that the new generation is interested in cryptocurrencies, so Luzboa gives people the opportunity to use new payment methods. Today, Luzboa serves more than 5,000 customers.
Despite the lack of awareness of local regulators about the cryptocurrency industry, Portugal is becoming a cryptocurrency-friendly country. In 2014, the world’s first bitcoin atm appeared in Lisbon. At the end of 2019, the Portuguese Tax Service announced that cryptocurrency trading and payments in bitcoin will not be subject to value added tax (VAT).
In addition, last year, the Portuguese government planned to create “technology free zones” for the development of blockchain, artificial intelligence and 5G. However, in general, the Central Bank of Portugal takes an observer position in relation to cryptocurrencies and treats them with caution, given their high volatility.