A variety of cryptocurrencies, including Bitcoin and Tether, have been granted legal money in Lugano, Switzerland, as the city seeks to establish itself as a regional crypto centre.
On March 3, city director Pietro Poretti made the announcement during a live-streamed event called “Lugano’s Plan.” He was accompanied by Lugano Mayor Michele Foletti and Tether CTO Paolo Ardoino.
Lugano is a city and municipality in Switzerland that is part of the Lugano District in the canton of Ticino. It has a population of approximately 62,000 people.
Tether Operations Limited, the company behind the world’s largest stablecoin, is supporting the project. The LVGA points payment token, in addition to Bitcoin and Tether (USDT), will be accepted as tender throughout the city.
Lugano’s Crypto Future
Following in the footsteps of El Salvador, the Swiss city intends to accept cryptocurrency payments and allow citizens to pay for public service fees, taxes, and education fees in Bitcoin. Ardoino remarked:
“After declaring bitcoin legal tender, El Salvador’s GDP climbed by 10% and tourism increased by 30%.” Consider what we can accomplish in a city in the heart of Europe.”
A physical location in the city’s centre will be developed as part of the proposal to act as a hub for crypto and blockchain entrepreneurs. In addition to the blockchain hub, the Memorandum of Understanding between Lugano and Tether covers a variety of activities.
A multimillion-dollar fund will be established to assist with the financing of blockchain-based enterprises. Tether will also provide knowledge and support to the city, with an emphasis on education. According to the release, collaboration with local universities and research institutes would result in 500 scholarships in the near future.
Bitcoin mining that is eco-friendly
The firm will also focus on employing ecologically friendly natural resources to fuel Bitcoin mining activities, allowing the asset to become a renewable energy development accelerator.
Mayor Michele Foletti of Lugano commented on past innovative technology introduced by the city before adding:
“We have a tremendous belief in this technology, its potential for scaling, and our integrated work with Tether to construct a better, more open, transparent, and smart city.”
Lugano has already created 3Achain, an EVM-compatible city blockchain, the MyLugano app, the LVGA Points payment token, and the Lugano digital Franc. “We hope that Lugano will become a model for global adoption,” stated Ardoino of Tether.