Lugano is following in El Salvador’s footsteps in introducing Bitcoin as legal tender. Tether and LVGA will also be official currencies in the Swiss city as part of its commitment to blockchain.
- Bitcoin, Tether, and LVGA will become official currencies in The City of Lugano.
- The Swiss city is partnering with Tether to make Lugano a blockchain hub: “Lugano’s Plan B”.
- Lugano will use Lightning Network for Bitcoin payments and explore clean mining.
Bitcoin (BTC) and tether (USDT) will become “de facto legal tender” in the southern Swiss city of Lugano, as the city partners with Tether to become the “Bitcoin Capital of Europe,” Tether’s Chief Technology Officer (CTO) Paolo Ardoino said during an event hosted with Lugano city officials on Thursday.
In addition to BTC and USDT, the local payment token luga (LVGA) will also be accepted by businesses and the public sector in the city, Ardoino added. Both USDT and LVGA will be used on the Polygon (MATIC) blockchain, while the Lightning Network is expected to play a key role in bitcoin adoption, the CTO added.
“Crypto adoption is a big opportunity for the retail sector, and ignoring it would like refusing to accept credit card terminals in shops 20 years ago,” Pietro Poretti said.
Aiming to become Europe’s Bitcoin capital, Lugano, Switzerland, has formed a partnership with stablecoin issuer Tether to establish bitcoin, Tether and Lugano’s own LVGA Points token as essentially legal tender in the city.
“We are going to roll out the red carpet for companies to be established in Lugano,” the city’s Director for Economic Development, Pietro Poretti, said during today’s presentation. He added that the city will also help with things such as obtaining residence permits for foreign entrepreneurs, employees, and their families who wish to relocate to Lugano and Switzerland.
For the same purpose, Tether’s Ardoino said his company is setting up a pool of CHF 100m (USD 109m) to help startups from other countries that want to establish a presence in Lugano and bring their own people to the city.
Also announced at Plan B were plans for the Bitcoin World Forum to be held in Lugano on October 26-28.