The Switzerland City of Lugano Recognizes Bitcoin and Tether as “de facto’ Legal Tender

The Switzerland City of Lugano has recognized Bitcoin and Tether as “de facto” legal tender. This week the city council voted to accept these cryptocurrencies for all public services, including its allotment of 1 million Swiss francs worth of BTC per year for citizens who wish to buy an apartment there.

The “is cryptocurrency legal” is a question that has been asked many times. The Switzerland City of Lugano Recognizes Bitcoin and Tether as “de facto’ Legal Tender.

Cryptocurrencies will be used to pay for taxes, parking tickets, education fees, and other products and services for the city’s 62,000 citizens. Crypto enthusiasts and consumers are now hoping for a greater use of cryptocurrencies.

Lugano, Switzerland’s southernmost city, has taken a step closer to becoming Europe’s Bitcoin capital after announcing that local companies would accept several cryptocurrencies as “de facto” legal cash as part of a cooperation with Tether Operations Limited. The city has partnered with Tether, the creator of the stablecoin, to make Bitcoin, Tether, and the city’s own LVGA points token “de facto” legal cash in Lugano. In a news statement, the municipality stated:

“The memorandum of understanding signed between Lugano and Tether will encourage the local adoption of blockchain technology by allowing citizens to pay taxes and fees for all services in Bitcoin, Tether, or Stablecoin based on the Swiss franc […] together, the two partners will work toward achieving the shared goal of increasing the city’s blockchain capabilities and promoting Lugano as a new hub for the adoption of blockchain at a European level.”

To encourage Bitcoin, Tether (USDT), and the LVGA token’s adoption.

Tether’s Chief Technical Officer Paolo Ardoino made the revelation when he spoke at the city’s Plan B event. He said the firm had created a 3 million Swiss-franc fund in partnership with Lugano officials To encourage Bitcoin, Tether (USDT), and the LVGA token’s adoption. for shops and businesses across the country’s Southern Metropolis. According to Ardoino, the project aims to attract talent from the crypto space to Lugano so the city can become a leading blockchain hub in Europe. Ardoino stated:

“We want to demonstrate that these newly established tools, instruments, and currencies can be put to use in a [locally regulated] thriving setting like Lugano.”

Through a third-party middleman, the money will be exchanged into local fiat currency.

Ardoino went on to say that, in addition to enabling Lugano residents to pay their taxes using cryptocurrency, the initiative would also enable them to pay for parking fines, public services, and student tuition expenses. More than 200 local stores and companies are scheduled to accept cryptocurrency payments for products and services.

The partnership aims to demonstrate the real-world utility of blockchain within the local community. As per the plan, once the city’s residents use the named digital assets as a legal tender, Through a third-party middleman, the money will be exchanged into local fiat currency.. Nonetheless, the Swiss Franc will remain the only legal tender in the city. The plan differs slightly from El Salvador, where Bitcoin is the second official currency in September 2021.

The Bitcoin World Forum, which will be hosted in Lugano on October 26-28, was also revealed during the “Plan B” event. Lugano, Switzerland’s ninth-largest city, is located in the Italian-speaking southern section of the nation and has a population of slightly over 62,000 people.