Luzboa, a small energy trading company in Portugal, will soon start accepting Bitcoin as payment for electricity. The company’s president Pedro Morais Leitão announced the news to Portuguese publication Expresso on Wednesday, stating that the new payment option should become available this month. According to the firm’s executive, Luzboa will create a Bitcoin wallet in the coming days, allowing residents to pay for electricity under a new payment system known as “Bit Spot.”
Luzboa plans to convert Bitcoin into euros to protect its business from unstable prices.
According to Leitão, the firm plans to instantly convert received Bitcoin into euros to protect its business from unstable prices. “We are aware of currency volatility, but we are prepared to take some risk,” the exec said. Leitão explained that the initiative’s main idea is to “capture a niche market” rather than make its customers move into Bitcoin payments. “There is a new generation with interest in cryptocurrencies. We are looking to give an opportunity to use new means of payment,” he added. Luzboa reportedly has around 5,000 residential customers.
Bitcoin continues to extend gains as it continues to attract mainstream exposure.
Portugal has been slowly emerging as a crypto-friendly country in recent years despite industry awareness among local regulators staying relatively low in recent years. The European country is specifically known for charging zero taxes from retail cryptocurrency trading after the Portuguese finance minister announced that retail trades of Bitcoin were not taxable in late 2017. Since Tesla’s investment in the leading cryptocurrency, bitcoin, the market has seen a frenzy. Several other big companies have made statements about their potential interest in bitcoin and other cryptocurrencies. The recent massive bitcoin rally has helped the leading cryptocurrency gain mainstream exposure.