Luxembourg PM wants nation to be the 'digital frontrunner' in blockchain

One of the smallest countries in Europe is aiming to be comparatively progressive in its adoption of blockchain and cryptocurrencies, according to the nation's leadership.

Speaking in a prerecorded message to attendees of the Luxembourg Blockchain Week conference, Prime Minister Xavier Bettel said the country is planning to "keep looking forward" and "keep taking risks" when it comes to innovative technology like blockchain. Bettel described blockchain as mainly about "cryptocurrencies and hype," jokingly saying he could create a nonfungible token, or NFT, of his scarves and "make a lot of money in a very short time."

"My government's goal is to make out of Luxembourg the digital frontrunner it already is,” said the prime minister. “It is in the frontrunner’s nature to keep progressing, rather than preserving the lead of the moment.”

Serving as prime minister since 2013, Bettel clarified that he was “not a technical person” or a developer. However, he said he was "100% convinced of technology that can facilitate our lives and help us focus on our human relationships."

Many consider Luxembourg to be one of the most proactive countries around blockchain and crypto. The local government previously labeled cryptocurrencies as "intangible assets" that were not subject to income tax until they were exchanged for fiat, but also treat income or gains derived from the exchange of cryptocurrencies as taxable. In addition, the country is home to the payment institution behind cryptocurrency exchange Bitstamp.

Luxembourg Blockchain Week is a one-week conference organized by the Luxembourg Blockchain Lab, being held from April 26 to April 30.