On 3rd March in a live-streamed event called “Lugano’s Plan ?”, the director of Lugano, Pietro Poretti, made an announcement of making cryptocurrencies including Bitcoin as legal tender in Lugano which is a city and municipality in Switzerland. He said citizens will be allowed to use tokens to pay for public service fees or taxes. The city also adopted stablecoin Tether and its own token, LVGA.

In the event, Poretti was also joined by Lugano Mayor Michele Foletti and CTO of Tether Paolo Ardoino. To integrate cryptocurrency into the city’s daily operations, a plan has been developed by the city of Lugano. The city has a population of around 62,000. Lugano is a part of the Lugano District in the canton of Ticino. The adoption of Bitcoin as legal tender will enable people to pay government taxes and services in Bitcoin. It will also include day-to-day transactions with stores, parking tickets, passport issuance fees, meals and tuition fees, dog taxes, events fees, paying all these in the three cryptocurrencies mentioned. Already more than 200 businesses and merchants are prepared for Bitcoin and lightning payments. The project is being supported by Tether Operations Limited, which is the company behind the world's largest stablecoin. Along with Bitcoin and Tether (USDT), the LVGA points token will also be accepted by the city as tender.

This was declared as a part of Lugano's "Plan B," which is a plan to make the city Bitcoin capital of Europe by the Lugano government and Tether. City director Pietro Poretti said "Plan B is all about making Lugano a place where cryptos are accepted by everybody and everywhere in the public and the private sector. Not all cryptos of course! Bitcoin, Tether, and LVGA (city's token),".

Plan B includes building a physical space in the heart of the city to serve as a hub for Bitcoin and blockchain startups. Another part of Plan B is to enhance the skills of young students in these new technologies related to cryptocurrency. Hence in collaboration with local universities and research instituted its plans to build a specialized curriculum on bitcoin technology and the Lightning. As per the announcement, 500 scholarships will be provided in the near future. Apart from these, the Memorandum of Understanding between Lugano and Tether includes several other initiatives. Tether will provide support and expertise to the city with an emphasis on education. To support the blockchain-based startup's multi-million dollar will be set.

Additionally, the company aims to use environmentally friendly natural resources to power Bitcoin mining operations. This will allow the asset to act as an accelerator for the development of renewable energy.

The city of Lugano has already created the city blockchain 3Achain, MyLugano app, LVGA Points payment token, and Lugano digital Franc. “We look forward to Lugano becoming a model for global adoption,” said Tether’s Ardoino. Other countries also welcome such ideas. In the United States, Miami and New York are focusing on the 'crypto capital' title.

Indrani bose

CBW - External Analyst

INDIA