On March 7, 2022, Lugano—a Swiss city renowned as a tax haven—joined El Salvador in making cryptocurrency history by recognizing Bitcoin (BTC), Tether (USDT), and the Swiss franc-pegged LVGA stablecoin as official legal tender for municipal transactions. With a population of 63,000, Lugano becomes Europe’s first city to embrace this digital currency initiative.
Key Developments in Lugano’s Crypto Adoption
1. Legal Tender Status
- Approved Cryptocurrencies: BTC, USDT, and LVGA.
Use Cases:
- Municipal tax payments
- Parking fines
- Passport/ID fees
- Public services and school tuition
2. Merchant Participation
Over 200 local businesses now accept crypto payments for goods and services, supported by Lugano’s government outreach.
3. The "Plan B" Initiative
A 100 million CHF fund will:
- Finance blockchain startups relocating to Lugano.
- Provide crypto/blockchain education for students.
- Accelerate the city’s goal to become Europe’s premier blockchain hub.
Why This Matters
- Tax Efficiency: Crypto streamlines cross-border transactions in this international financial center.
- Innovation Leadership: Lugano’s move signals Switzerland’s broader crypto-friendly policies.
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FAQs
Q: Can tourists use crypto in Lugano?
A: Yes—participating businesses accept BTC/USDT for retail purchases.
Q: Is the Swiss franc still used?
A: Yes, CHF remains legal tender; crypto is an additional option.
Q: How does Lugano’s plan compare to El Salvador’s?
A: Unlike El Salvador’s nationwide mandate, Lugano’s program is municipal and voluntary for businesses.
By integrating cryptocurrencies into daily commerce and governance, Lugano sets a benchmark for urban financial innovation. This strategic pivot enhances its global appeal to tech enterprises and forward-thinking investors.