Zug is a small city of about 30000 people, situated on the important train route between Italy and Germany. The city is known for its business-friendly policies, and is home to many important businesses. It is also known for being home to the Crypto Valley where over 400 blockchain startups are located, who are members of the Crypto Valley Association (CVA). Take a walk around the business of Zug and you’ll see Bitcoin and blockchain signs everywhere. Over 3000 people are employed here in the Blockchain industry. The Zug government will accept Bitcoin for a variety of services (although one cannot pay taxes in Bitcoin just yet).
Its foundation is fascinating. Nikolas Nikolajsen worked at Credit Suisse, but quit his job in 2013 to start his own blockchain company, Bitcoin Suisse. Thanks to connections to the Zug government, he held a number of talks with the city and cantonal (the Swiss equivalent of a state) governments. In 2014, Zug laid out a number of cryptocurrency friendly policies. This attracted many other crypto-businesses, including the Ethereum Foundation, who is the team behind the Ethereum coin. Soon after Ethereum took off, numerous other people came into the valley to start their own companies.
In 2017, the CVA was created, after the ICO boom that increased the number of blockchain companies in the valley by a large amount. The CVA works to represent the startups as a block, and help facilitate discussions with the government. Additionally, just 2 weeks ago at the end of September, CVA set up the Crypto Valley Venture Capital (CVVC). The CVVC is an investment fund set up to provide new crypto startups with investment so they can get started in the Valley. A group of 20 startups will be the first to receive investments from the fund, starting in winter.