Swiss city Lugano makes Crypto a Legal Tender
Lugano, Switzerland, is attempting to promote itself as Europe's Bitcoin capital by forming a relationship with stablecoin issuer Tether to make bitcoin, Tether, and the city's own LVGA Points token practically legal tender in the city. There are about 60,000 people living in Lugano, which is the ninth most populous city in Switzerland. Located in Switzerland's southernmost region, Lugano is an Italian-speaking city.
It needed a partnership between Lugano and stablecoin issuer Tether to get the move authorized. As a result, it is now possible to purchase products and services using bitcoin, Tether, and Lugano's own LVGA Points currency, in addition to other cryptocurrencies.
It is now possible to pay taxes with bitcoin in certain Swiss towns, a first in the world.
It is hoped that the collaboration between Lugano and Tether, called "Lugano's Plan B," will help to establish the city as a hub for blockchain adoption in European countries. According to the announcement, "Plan B" for Lugano is connected with the city's ambitions to reclaim its former position as an international financial center after years of decline.
Bitcoin, the most valuable cryptocurrency in market capitalization, is already recognized as a legal currency in El Salvador. His Excellency, Nayib Bukele, is a firm supporter of bitcoin and conducts business on behalf of the country through his mobile phone.
“We want to show that these tools, these instruments, these currencies that were created can be put to work in a [locally-controlled] vibrant environment like the city of Lugano,” said Tether chief technical officer Ardoino.
“Lugano is investing in its future. In recent years, the city has already implemented blockchain-based solutions including the MyLugano app and its LVGA Points payment token, the Lugano digital franc, and the 3Achain blockchain infrastructure,” said Mayor Foletti.
Adding to this, Tether's chief technology officer, Paolo Ardoino, stated, "As the world's largest stablecoin, we envision a future where businesses of all sizes and scale will be able to leverage blockchain platforms to improve the quality of life of local citizens by providing more sustainable, transparent, and reliable financial and day-to-day services. Tether is the world's largest stablecoin, with a market capitalization of $11 billion. We hope that the city of Lugano will become a paradigm for global adoption."
The city of Lugano has undergone tremendous achievements in the Web3 field in recent years. They have developed a blockchain termed 3Achain and is currently being used by roughly 30 partners from Switzerland's public and business sectors. The city also intends to award scholarships to around 500 students researching cryptocurrencies and decentralized finance at universities throughout the country (DeFi).
The mayor also stated that the Bitcoin World Forum would be held there, which will take place in Lugano from October 26-28.
Lugano will also establish a dedicated center for hosting companies and a fund of 100 million Swiss francs to finance blockchain-related projects. An additional 3 million Swiss francs will be put out to adopt foto speed by local companies.
El Salvador became the first country to officially recognize Bitcoin as legal tender when it did so last year, making it the first country to do so worldwide. The measure was passed by 62 to 84 in the Central American country's congressional assembly.
Narib Bukele, El Salvador's millennial president, has put the law to a referendum throughout the country. Following the vote, the price of bitcoin came to USD 34,239.17. As previously stated, there would be no capital gains tax on bitcoin exchanges, and cryptocurrency entrepreneurs will be eligible for permanent residency in the country, according to the President.
