Lugano, Switzerland will adopt Bitcoin as legal tender allowing their citizens to pay for their public services and their taxes in cryptocurrency as well as access a new physical hub that will host blockchain events
‘Plan ₿’ is a joint effort between the city director, the mayor and the Tether CTO. Three cryptocurrencies will receive legal tender status: Bitcoin, USDT (Tether) and LVGA (Lugano’s stablecoin which is priced currently at one-hundredth of one Swiss franc). Lugano is, right now, designing a strategy to harness renewable energy technology for crypto mining. There will be an educational drive: Lugano will establish a partnership with its local universities to offer Bitcoin and Lightning courses to students.
Lugano is proposing two funding streams: $108.6 million for Bitcoin and blockchain startups to locate their headquarters in Lugano, then a further $3.26 million to broaden the adoption of Bitcoin, USDT and LVGA.
Lugano’s initiative is similar to that of El Salvador where Bitcoin has been approved for the payment of public services. Both initiatives are intended to draw people to these cities. However, there are a few differences between the two:
- the city of Lugano already exists whereas El Salvador’s Bitcoin City is being constructed from scratch;
- Switzerland already have existing crypto hubs in Zug, Zurich and Neuchâtel, while El Salvador’s Bitcoin City is about to become the first of its kind in that country;
- Lugano has gone further than El Salvador by offering the educational window;
- Lugano has given multiple cryptocurrencies legal tender status whereas El Salvador’s granting of legal tender status was confined to Bitcoin; and
- the prior approval by FINMA (Financial Market Supervisory Authority) of a fund that invests primarily in cryptocurrencies paved the way for the establishment of Lugano’s new hub, whereas President Nayib Bukele of El Salvador seemed to have gone ahead with the Bitcoin City project before its regulator had taken any steps to greenlight any crypto funding platforms.
Lugano’s initiative further validates Bitcoin as a viable technology and recognizes Lightning as the principal second-layer network for Bitcoin.
There are many other countries and US states looking to follow suit, this trend will be tremendously bullish for LQwD Fintech as its continues to roll out its global Lightning Network nodes in major financial centres.