After Zug, the second Swiss city has declared Bitcoin as legal tender. Lugano, for one, allows its citizens and businesses to pay fees for public services and taxes in Bitcoin. In addition, the city wants to support crypto companies and facilitate payments.
City Director Pietro Poretti announced this impressive move at an event together with Mayor Michele Foletti and Paolo Ardoino, CTO of leading stablecoin issuer Tether. The city mayor and Tether's chief technology officer signed an agreement for a four-year collaboration amid applause from the Lughanesi in the packed Palazzo dei Congressi. He said the city is already working with more than 200 merchants to advance the adoption of Bitcoin and Lightning payments. In addition, the collaboration aims to establish the stablecoin Tether (USDT) and the city's own token LVGA as legal tender.
Economic project "Plan B"
The city initiative, designed and implemented in collaboration with Tether, aims to attract wealth, bright minds and businesses to Canton Ticino. Tether's stablecoin USDT will provide the city with an additional and legally recognized means of payment. "Plan B" includes the creation of a physical location in the heart of Lugano that will act as a hub for Bitcoin and Blockchain startups. It will be a meeting place for companies and startups interested in making the city their new home. It will also serve as a hub for networking events and events such as Bitcoin meetups and workshops.
"El Salvador's GDP increased by 10% and tourism by 30% after Bitcoin was declared legal tender. Imagine what we can achieve in a city in the center of Europe." - Paolo Ardoino, CTO Tether
City Director Poretti said the city will "roll out the red carpet" for Bitcoin businesses and enthusiasts and welcome visitors, as well as potential newcomers, with a business-friendly environment. The city aims to stand out for its minimal bureaucracy and ideal conditions for local businesses to thrive.
Investment in the future
Plan B also calls for the creation of two investment funds. The first will provide up to $3.26 million to help adopt Bitcoin, USDT and LVGA - the city's local stablecoin worth one hundredth of a Swiss franc. The second component is the creation of a fund of up to $108.6 million for bitcoin and blockchain startups looking to relocate their headquarters to the city and bring workforce to Switzerland.
Close cooperation with the academic world will also follow. There are plans to create a special curriculum for Bitcoin and the Lightning network in cooperation with local universities. This is intended to improve the skills of young students in these new technologies. The educational efforts in Bitcoin and Blockchain also include the creation of 500 stipends for students to train skilled and specialized professionals. Lastly, Plan B will explore strategies the city could use to use renewable energy sources to mine Bitcoin.
