Swiss City Makes Bitcoin 'De Facto Legal Tender'
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Swiss City Makes Bitcoin 'De Facto Legal Tender'

3 months ago

Lugano says the move is designed to ensure the region becomes "a major hub for European blockchain adoption" — and unlock compelling use cases for local communities.

Swiss City Makes Bitcoin 'De Facto Legal Tender'

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A city in Switzerland has announced that it is making Bitcoin "de facto" legal tender — alongside the Tether stablecoin and its own native token.

Lugano says the move is designed to ensure the region becomes "a major hub for European blockchain adoption" — and unlock compelling use cases for local communities.

Proposed measures include allowing citizens and companies to pay tax bills in crypto — as well as purchase everyday goods and services.

Next steps include ensuring local businesses have the infrastructure required to accept crypto transactions — with funds converted into fiat currencies at the point of purchase.

A number of initiatives are going to be pursued as a result of a memorandum of understanding between Lugano and Tether — including a multimillion-dollar fund "to help finance blockchain-based startup companies," and 500 scholarships to help educate students about how this technology works.

Lugano also plans to use "natural resources and environmentally friendly alternatives to power Bitcoin mining" — most likely in a bid to stave off critics who are concerned about the impact that Proof-of-Work blockchains have on the climate.

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'A Model for Global Adoption'

Lugano's mayor, Michele Foletti, said this is a logical next step given how the city has already embraced a digital franc and a token that offers a modern take on loyalty schemes. He added:

"We strongly believe in this technology, the potential to scale the technology — and our integrated collaboration with Tether — will build a better and more open, transparent and smart city."

Tether's chief technology officer Paolo Ardoino added that Lugano has the potential to offer a blueprint for global option, and said:

"Lugano is a vibrant city, filled with innovators and future-forward thinkers. As the world's largest stablecoin, we envision a future where businesses of all sizes and scale are able to leverage blockchain platforms to improve the quality of life of local citizens providing more sustainable, transparent, and reliable financial and day-to-day services."

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