Bitcoin and Tether become a legal tender in the Lugano city of Switzerland


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