The city of Lugano in Switzerland has made a significant move into the future of finance by allowing the use of Bitcoin for city transactions. This innovative project, announced on December 5, enables Lugano to accept Tether and Bitcoin as payment for taxes. It is part of Lugano’s “Plan B,” a partnership with Tether to use Bitcoin technology to revolutionize the city’s financial system. The overarching goal is to integrate blockchain technologies into routine municipal operations and expand cryptocurrency payments in public life. Automated processing through the Swiss institutional-grade cryptocurrency network Bitcoin Suisse will begin accepting Bitcoin and the stablecoin Tether (USDT) as payment methods in Lugano.
Lugano Embraces Tether Integration And Blockchain Exploration
Residents and businesses can now utilize cryptocurrency to pay any amount for local services or taxes. The Swiss QR-bill, which allows payments through mobile wallets and certain cryptocurrencies, facilitates this practical implementation.
Previously, the city used blockchain technology to develop other solutions, such as the 3Achain blockchain infrastructure, the Lugano digital franc, and the MyLugano app with its LVGA Points payment currency.
Bitcoin Trend In Swiss Cities
Armin Schmid, the Chief Product Officer of Bitcoin Suisse, acknowledged the positive trend of more Swiss towns implementing crypto payments and emphasized the importance of offering such options alongside traditional payment methods like post-office counters and e-banking systems.
Lugano’s strategy is in line with the global trend of government transactions increasingly using digital assets. Similarly, Banco do Brasil, the oldest bank in Brazil, collaborated with Bitfy in February 2023 to enable tax payments with digital assets.
Schmid expressed his delight in supporting the City of Lugano in accelerating the use of Bitcoin technology to transform the city’s financial infrastructure. MyLugano, a payment software unveiled by Polygon, allows Lugano locals to use cryptocurrency to pay for public services, parking fines, and taxes. Additionally, Zug, the “crypto valley” of Switzerland, began accepting BTC and Ethereum as payment for taxes in 2021 after collaborating with Bitcoin Suisse to convert cryptocurrency tax payments into Swiss francs.
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