In 2021, El Salvador made headlines by becoming the first country to adopt Bitcoin as legal tender. Now, Switzerland's eighth-largest city, Lugano (population: ~63,000), is pioneering cryptocurrency adoption among businesses and residents for everyday transactions.
Official Recognition of Crypto Payments
During the "Plan B" event in Lugano, Mayor Michele Foletti and Tether CTO Paolo Ardoino announced a landmark decision:
- New Legal Tender Status: Bitcoin (BTC), Tether's USDT (USD-pegged stablecoin), and LVGA (a Swiss Franc-backed stablecoin) now hold equal payment status alongside the Swiss Franc.
Government Integration: Residents can use these cryptocurrencies for:
- Tax payments
- Parking fines
- Passport/ID issuance fees
- Public services
- School tuition
Business Adoption and Economic Strategy
Over 200 local businesses now accept crypto payments for goods and services. While the Swiss Franc remains Switzerland's official currency, Lugano is implementing bold crypto-forward initiatives:
- 100M CHF Development Fund: Supports blockchain education and startups
- Blockchain Education: University courses on cryptocurrency technology
- Startup Incubation: Aims to establish Lugano as Europe's premier blockchain hub by fostering unicorn companies
👉 How does crypto adoption impact traditional finance?
Frequently Asked Questions
Q: Can tourists use crypto in Lugano?
A: Yes, participating businesses accept BTC/USDT/LVGA alongside traditional payment methods.
Q: Are crypto transactions mandatory?
A: No, adoption is voluntary—the Swiss Franc remains fully valid.
Q: How does Lugano's approach differ from El Salvador's?
A: Unlike El Salvador's nationwide mandate, Lugano's program is city-led with stronger educational and business development components.
Q: What consumer protections exist for crypto payments?
A: Transactions follow existing Swiss financial regulations, with stablecoins pegged to fiat currencies minimizing volatility risks.
👉 Why are stablecoins crucial for mainstream adoption?
This strategic move positions Lugano as a testing ground for blockchain-powered urban economies while maintaining Switzerland's reputation for financial innovation.