The city of Lugano, Switzerland, is making history by being the first to incorporate crypto assets beyond Bitcoin as legal tender.
- Lugano Makes Crypto Legal Tender
- Following El Salvador’s Footsteps
Bitcoin is treading on thin ice right now as it clings to support at $42,000. Despite volatility woes, however, the city of Lugano, Switzerland, is looking beyond the asset class’s price swings to bring the future of finance to Lugano. And it’s not just Bitcoin that’s becoming legal tender this time.
Lugano Makes Crypto Legal Tender
— Tether (@Tether_to) March 3, 2022
As announced by the popular Tether (USDT), stablecoin, Bitcoin, USDT, and LVGA token are all becoming legal tender in Lugano. This is a historic step for the crypto asset class as it marks the first instance in which crypto tokens beyond Bitcoin are being recognized as legal tender.
The EU newsletter Trending Topics highlights Paolo Ardoino, Tether’s CTO, who says that he wants to make the city of 62,000 people ‘Europe’s blockchain hub’ and show the world how cryptocurrencies can be used in everyday life.
Michele Foletti, Mayor of Lugano, said this in a statement:
In recent years, the city has already implemented blockchain-based solutions, including the MyLugano app and its LVGA payment token, the digital Lugano franc, and the 3Achain blockchain infrastructure. We strongly believe that this technology, the potential to scale the technology – and our integrated collaboration with Tether – will create a better and more open, transparent, and intelligent city.”
You’re probably familiar with Bitcoin and USDT, but LVGA token aims to be the city’s central payment token. Lugano reportedly already has its own payment token, the LUGA stablecoin, which features its own blockchain and the ability to pay for certain transactions, but they want to ramp up the city’s crypto efforts. Tether will reportedly invest three million Swiss francs (~$3,258,408) in crypto projects via a new fund.
Following El Salvador’s Footsteps
Lugano wants to introduce the Lightning Network, a layer 2 solution for Bitcoin, and promote sustainable Bitcoin mining.
“The electricity providers in the region are already offering 100 percent green electricity. El Salvador has seen strong gains in GDP and tourism following BTC adoption,” Ardoino said.
NEW: Switzerland’s City of Lugano will invest in helping university students learn about #Bitcoin and Lightning 🇨🇭
— Bitcoin Magazine (@BitcoinMagazine) March 3, 2022
After El Salvador integrated Bitcoin into its economy by making it legal tender in June 2021, the country has seen blooming economic growth in key sectors, leaving inspiration for Lugano to build off of.
Since El Salvador made history, we’ve seen a snowball effect gradually taking place throughout the world, with various state and national officials calling on Bitcoin to become legal tender, most recently from Mexico, Arizona, and more.
— naiive (@naiivememe) March 3, 2022