The Coronavirus is causing widespread havoc: Markets are crashing, travel is getting restricted, and supermarkets worldwide have run out of toilet paper. What Liechtenstein-based blockchain businesses should know.
Although the Coronavirus is not known to cause diarrhea, at least not in humans, the lack of toilet paper shows how much this pandemic is already affecting the global economy. Unfortunately, Liechtenstein is no exception. Here are three recent developments you should follow.
U.S. Travel Ban includes Liechtenstein and Switzerland
In the United States, President Trump announced new travel restrictions in response to the virus. He signed a Presidential Proclamation suspending the entry of most foreign nationals who have been in certain European countries during the 14 days before their scheduled arrival to the U.S.
The list of countries includes Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland.
Thus, if you are based in Liechtenstein or Switzerland, or have been to any of the other countries on the list during the last 14 days, you won’t be able to board a plane to the U.S. This restriction will remain in place for the next 30 days. Depending on the airline, you will be able to change your ticket to a later date at no additional cost.
Americans who are currently in Liechtenstein, however, can travel back to the U.S. but will have to enter through specific airports that have implemented enhanced screening procedures.
Conferences delayed: CCA Token Summit and Finance Forum Liechtenstein
Two major crypto and finance conferences in Liechtenstein were delayed. The CCA Token Summit Liechtenstein that was initially scheduled for the 26th of March has been rescheduled to the 20th of August.
The sixth edition of the Finance Forum Liechtenstein, which was initially planned for the 11th of March, had to be delayed for “several weeks,” according to the organizers. A new date has not yet been announced. Anyone who had already registered will keep their tickets. If someone cannot join the new date, it will be possible to either send another person or cancel the ticket.
Crypto selloff lowers valuations
The recent market sell-off has also heavily affected crypto markets. Bitcoin is down nearly 40% since the beginning of the month, and most major Altcoins are deep in negative territory as well. The sell-off affects many crypto businesses in Liechtenstein and Switzerland, as their company valuations amongst others depend on the prices of their tokens.
The sudden price drop may also be an issue for crypto hedge funds and investment companies that are relying on performance fees to keep their business going. However, the upcoming Bitcoin Halving in Mai could cause a supply shock and elevate Bitcoin prices. Also, some argue Bitcoin’s function as a safe haven should kick in as soon as the current liquidity crisis is over and give Bitcoin a boost that may even send it higher than its 2017 peak valuation.
Of course, as the world economy is shaking, Liechtenstein will feel an impact as well. But the good news is that it could give blockchain and crypto businesses more upwind in the future, as every crisis shows how fragile our current system is. Could blockchain be the key to a more robust economy? Maybe. In the meantime, make sure you get enough toilet paper.