‘Plan B’ in Europe: Swiss city Lugano is making Bitcoin, Tether and LVGA legal tender
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The Swiss city of Lugano is going the El Salvador “Plan B” route and is set to introduce Bitcoin (BTC), Tether (USDT), and its own LVGA token as legal tender.
There are other global matters understandably dominating headlines at the moment, but in the world of crypto, this is a very big deal. Lugano, which is Switzerland’s eighth-largest city with about 63,000 people, is essentially aiming to become a hub for blockchain adoption in Europe.
The announcement was made yesterday by officials from the Italian-speaking city and Tether at a livestreamed event titled “Lugano’s Plan B”.
And, similar to El Salvador’ BTC legal tender set up, Lugano plans to have all of its businesses seamlessly use crypto for everyday transactions. It will also allow taxes to be paid with the three cryptocurrencies.
— Adam Back (@adam3us) March 3, 2022
Lugano citizens and companies will be able to use Bitcoin, Tether, and LVGA to pay for all goods, services, and taxes “in the near future,” according to a press release. Crypto payments will apparently be converted into local fiat via a third party intermediary.
Lugano’s mayor Michele Foletti, who hosted the “Plan B” event, described the move as a “de facto” legalisation, seeing as the Swiss franc will no doubt remain the principal legal tender in Lugano and across Switzerland.
Foletti said that the city was “investing in its future” through the partnership, adding that Lugano is a strong believer in blockchain’s potential and that the partnership would help build “a better and more open, transparent and smart city”.
“Lugano is the economic capital of southern Switzerland and has always been a leader in the creation of new opportunities,” said Foletti.
— Tether (@Tether_to) March 3, 2022
Paolo Ardoino, Tether’s Chief Technology Officer, added that Tether looks forward to Lugano “becoming a model for global adoption” of cryptocurrency technology.
The city and Tether have committed to various initiatives including the promotion of blockchain and crypto-focused education at Lugano’s three major universities, and the creation of a blockchain company hub and fund for startups.
“This isn’t a marketing ploy,” Ardoino said. “It’s a set of concrete steps to make Lugano the blockchain capital of the world.”
The Swiss city is also focused on helping businesses integrate payments solutions for stablecoins, has plans to integrate Bitcoin’s Layer 2 Lightning Network for scalability, and aims to use green energy for Bitcoin mining.
Also announced at the event was the Bitcoin World Forum, which will be held in Lugano in October.