Lugano will become one of the first cities in the world to introduce a full cryptocurrency payment economy. To this end, Tether, the Hong Kong-based issuer of the first stablecoin, and the city of Lugano will establish Lugano as a major hub for blockchain adoption across Europe.
According to a press release issued by Tether, Lugano intends to offer residents the opportunity to settle annual tax bills and pay for both goods and services in cryptocurrency. Only Bitcoin, Tether and selected Swiss franc-based stablecoins will be permitted for such transactions. The funds are to be converted into the local FIAT currency via various service providers, with the Lightning Network to serve as the payment system.
The aim is to transform Lugano into a “home for the crypto community where it can grow and prosper”, Tether writes in the press release. Among the planned initiatives is the establishment of a specialized hub to host companies and start-ups, which will act as a catalyst for everything related to blockchain in addition to facilitating their establishment and daily operations.
Fintech & blockchain
Fintech & blockchain
The Greater Zurich Area has evolved into a global fintech and blockchain hub, thanks to factors like access to talent, leading research institutes, innovation-friendly regulators, investors and industry partners. Switzerland, and particularly Crypto Valley in the Greater Zurich Area, has been at the forefront of digitization and disruptive technologies, and start-ups in the area have access to a variety of incubators and accelerators that support them in establishing a company and developing ideas and products.
The initiative will also serve as a beacon for green financing. The city plans to invest the proceeds from so-called “mining” activities in green financing projects. The first Bitcoin World Forum in October 2022 will bring together thought leaders and creators from the world of digital finance, offering a chance for collaboration and networking in the process.
“Lugano is investing in its future”, comments Michele Foletti, Mayor of Lugano, in the press release. Foletti is of the firm conviction that the technology, its scalability potential and the integrated collaboration with Tether will help to “build a better and more open, transparent and smart city”.
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