How the City of Zug Shifted the Overton Window on Bitcoin

Photo: Videvo

Author: Manuel Stagars
February 2026

Imagine living in a time when Bitcoin is still considered a currency for hackers and criminals, a fringe phenomenon avoided by reputable institutions and governments. Suddenly, a small Swiss city decides to accept it for official payments. This bold move shifts Bitcoin's so-called "Overton Window," the spectrum of what is considered politically and socially acceptable. This is exactly what happened in Zug in 2016, and it shaped and changed the global debate about Bitcoin overnight. Bitcoin was once unthinkable, and today it's mainstream. Let's look at exactly how this happened and what role the city of Zug played.

But first, what exactly is the "Overton Window"? The term comes from Joseph Overton, an American politician, and describes the range of acceptable opinions in the public sphere. It ranges from "unthinkable" to "radical" to "popular." For Bitcoin, the window between 2010 and 2015 was considered very narrow, as Bitcoin was unthinkable for institutions and governments due to its association with crime. One example is Mt. Gox, then the largest Bitcoin exchange. In 2014, a hacker stole 850,000 bitcoins (approximately US$450 million at the time), still the largest cryptocurrency theft of all time. This destroyed trust and led to the bankruptcy of Mt. Gox, and many early bitcoin investors lost all their coins. Another example is Silk Road, the dark web platform for drugs and illegal goods, which was shut down in 2013 and was then the primary application of Bitcoin as a means of payment. Furthermore, allegations of money laundering mounted, and governments like the United States warned of risks that no one, except for early hardcore Bitcoin enthusiasts, wanted to be associated with.

So yes, around 2015, Bitcoin was a taboo subject, radical and risky. Then Zug entered the picture. This small capital of the canton of Zug, with around 30,000 inhabitants, is known for its mountains, its lake, and, typically Swiss, low taxes. It was then not exactly known as a tech mecca like Silicon Valley, but rather as a quiet residential area for multimillionaires and the headquarters of international companies like Glencore, Siemens, Johnson & Johnson, Transocean, and many others. But then Zug took a big and unexpected step: On May 9, 2016, the city announced it would accept Bitcoin for public fees, specifically for registration fees at the residents' registration office, up to 200 Swiss francs (then 205 US dollars). The plan was implemented starting in July 2016, in partnership with Bitcoin Suisse, which processed the payments. It was a pilot project, limited to small amounts, but the first instance worldwide of a government officially accepting Bitcoin. Mayor Dolfi Müller said at the time: "We want to position ourselves as an innovative location." This was intended to be a practical test, without much fanfare. But things turned out very differently.

International media outlets picked up the news and descended upon Zug, transforming the tranquil Swiss town into a global player overnight. NBC News wrote of a “Bitcoin Breakthrough” and reported: “Residents in Zug will be able to use bitcoin for payments for some public services beginning July 1.” Fortune followed suit: “Municipal bosses in the Swiss town of Zug have decided to accept the Bitcoin cryptocurrency for payments […].” These reports spread around the world, from Europe to Asia, and boosted Bitcoin's image; the Overton Window shifted from “criminal” to “innovative.”

What was the result for Bitcoin? The city of Zug's move normalized this first cryptocurrency and gave it a degree of credibility. The pilot project also demonstrated that Bitcoin works securely, efficiently, and without disaster. This attracted companies to Crypto Valley. The Ethereum Foundation had already established itself in Zug shortly before, and now the region rapidly grew to over 1,700 companies. Bitcoin was portrayed in the media as a reputable tool, which reassured investors. This was a catalyst for Bitcoin's acceptance, transforming it from "experimental" to "practical" to "sensible." Moreover, all of this happened in Switzerland with Swiss discretion and stability, lending it even more credibility. Without Zug, this shift would have taken longer or might never have occurred, as Crypto Valley was then the only place in the world where such things were even conceivable.

Where are we today? In 2026, Bitcoin is mainstream, traditional investment products like ETFs (approved in 2024) generate billions, and countries like El Salvador have even made Bitcoin their official currency. Nearly all governments worldwide have shifted their stance and are regulating crypto assets instead of banning them, even the USA. The Overton Window is wide open, and the city of Zug has rolled the first stone. A small step with a big impact.

If you want to know more about this pioneering step directly from those people who where there in the trenches, have a look at the short film "The City of Zug Goes All In" on www.cryptovalleypioneers.ch . The interviews with the then-mayor Dolfi Müller, the current mayor André Wicki and the city clerk Martin Würmli recount these early days, their risks and how the city of Zug changed the world in 2016.