The city of Lugano in Switzerland’s Ticino region will accept Bitcoin, Tether, and its own LVGA token as legal tender. The initiative will enable citizens to pay for taxes, goods, and services with Bitcoin, Tether, and LVGA.
The city officials and Tether made the announcement of what they dubbed “Lugano’s Plan B” in a Thursday live stream. A press release announced that citizens and businesses in Lugano will be able to pay for all goods, services, and taxes using Bitcoin, Tether, and LVGA “in the near future.” A third party intermediary will facilitate the conversion of funds into local fiat currency for citizens choosing to use their crypto assets.
In Lugano’s Plan B, the city and Tether will partner with the aim of making the city a blockchain adoption centre in Europe. Lugano and Tether hope to demonstrate the real-world utility of blockchain in the local community. The partnership would be Tether’s “first full-scale urban practical use case,” according to the release.
The Swiss city is also concentrating on assisting businesses in integrating stablecoin payment systems, and it hopes to achieve scalability by leveraging Bitcoin’s Layer 2 Lightning Network. Lugano and Tether have also planned a number of other projects, including the establishment of a blockchain enterprise cluster and a startup fund. Lugano further intends to mine Bitcoin using renewable energy.
The agreement, according to Lugano Mayor Michele Foletti, means “investing in its future.” Lugano, he continued, is a firm believer in blockchain’s promise, and the cooperation will aid in the development of “a better and more open, transparent and smart city.”
Tether’s Chief Technology Officer, Paolo Ardoino, added that the firm intends to help other businesses harness blockchain in the future, with Lugano becoming “a model for global adoption” of cryptocurrency.
Lugano isn’t the first place in the world where crypto assets have been accepted as a means of payment. Last year, Miami developed a cryptocurrency named MiamiCoin, led by notable Bitcoin enthusiast Francis Suarez, while El Salvador made history when government recognised Bitcoin as legal tender in September. The Central American country’s President, Nayib Bukele, has recently doubled down on Bitcoin by mining coins from volcanoes, dedicating a city to the cryptocurrency, and “buying the dip” during market downturns. While El Salvador’s embrace of Bitcoin has sparked outrage among its citizens, it remains to be seen how Lugano’s crypto move will be regarded.