Switzerland city Lugano introduces Bitcoin and Tether as ‘de facto’ legal tender
- The city of Lugano will enable its 62,000 citizens to pay taxes in cryptocurrencies.
- Bitcoin, Tether and its LVGA token will be recognized as ‘de facto’ legal tender.
- The city aims to allow its citizens to pay for goods and services in digital assets in the near future.
A city in Switzerland, Lugano has recently introduced Bitcoin, Tether and its own token, LVGA as “de facto” legal tender. Citizens in the city will be able to use the three cryptocurrencies to pay for goods and services in the near future.
A new blockchain hub in Europe
The largest city in Switzerland’s Ticino canton, Lugano has recognized Bitcoin, stablecoin Tether and LVGA token as “de facto” legal tender. The city, with a population of 62,000 will be able to pay taxes in cryptocurrencies.
The city has recently partnered with Tether Operations Limited, the issuer of the stablecoin Tether. The stablecoin firm and other cryptocurrency companies will create a major fund in the city for building blockchain services.
The recent update, dubbed “Lugano’s Plan B” will allow citizens and companies to be able to use Bitcoin, Tether and LVGA to pay for goods and services in the new future.
Once citizens use the digital assets as a currency, the funds will be converted into local fiat through a third-party intermediary.
The collaboration between Lugano and Tether will aim to turn the city into a hub for blockchain adoption in Europe. The partnership’s objective is also to demonstrate the real-world utility of blockchain within the local community.
The Swiss franc will still remain as the only legal tender in the city, setting itself apart from El Salvador, which declared Bitcoin its second official currency in September 2021.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
