Luzboa, a small Portugal energy trading company, will soon start accepting Bitcoin (BTC) as a payment for electricity.
Company president Pedro Morais Leitau announced the matter to Portuguese company Expresso on Wednesday and announced that a new payment option will be available this month.
According to the leader, Luzboa will create a Bitcoin wallet in the next few days so that citizens can pay for electricity costs using a new payment system known as Bit Spot. According to Leitao, the company plans to convert the received bitcoins into euros immediately to protect the business from fluctuating prices. “We are aware of the currency volatility, but we are willing to take some risks,” the leader said.
Leitao explained that the main idea behind the initiative is to “capture a niche market” rather than encouraging customers to make Bitcoin payments. “This is a new generation interested in cryptocurrencies. We want to provide an opportunity to use new payment methods.”
Luzbua is headquartered in Viseu, a city and municipality in the central region of Portugal, with around 5,000 private clients. Nexus Energía Group is the fifth largest independent energy company in Spain, and is the largest shareholder of Luzboa after acquiring 51% of the company in 2017.
Portugal has gradually developed into a cryptocurrency-friendly country, despite the fact that local regulators’ awareness about business has remained relatively low in recent years. The country is particularly notorious for imposing zero tax on cryptocurrency trading after the Portuguese Finance Minister announced that retail Bitcoin was tax-exempt at the end of 2017.