Lugano, a city in Switzerland, is using cryptocurrency as a means of paying taxes, goods and services, as part of a new partnership with the provider of the Tether (USDT) stablecoin. According to city director Pietro Poretti, who co-announced the news with Mayor Michele Foletti and CTO of Tether Paolo Ardoino in a live-streamed event a few days ago. More than 200 merchants are already working with the city to promote bitcoin and Lightning payments.
Ardoino even tweeted the same thing a few days ago. He shared a 15-second video detailing “all the things you can afford in the city in a few months.”
Residents of Lugano will be able to transact, invest and pay taxes with Bitcoin, USDT Tether and LVGA token after these three cryptocurrencies are approved as “de facto” legal tender in the city.
Watch the video here:
— Paolo Ardoino (@paoloardoino) March 3, 2022
Since it is pegged to the US dollar, the USDT Tether is a stablecoin, meaning its value remains relatively stable compared to other cryptocurrencies. Created by the city itself, the LVGA token is the country’s third cryptocurrency to be recognized as de facto legal tender.
The partnership between Lugano and Tether is referred to as Lugano’s “Plan B”. It plans to develop Lugano into a blockchain adoption hub in Europe.
El Salvador has already recognized Bitcoin – the world’s largest and oldest cryptocurrency – as legal tender. El Salvador’s move in September 2021, when the country became the first to recognize a cryptocurrency as de-facto money, may have accelerated Lugano’s decision. Lugano’s new rule is very similar to El Salvador’s. Lugano wants its companies to be able to use cryptos for routine transactions without any problems. However, only Bitcoin is accepted as legal tender in El Salvador.
More than 500 students studying cryptocurrency and Decentralized Finance (DeFi) can also get scholarships from Lugano.
Lugano will also host the Bitcoin World Forum conference in October this year.