The city of Lugano will accept Bitcoin and Tether as ‘de facto legal tender’

As part of a partnership agreement with Tether, the southern Swiss city of Lugano will allow local businesses to accept cryptocurrencies as “de facto legal tender”.

Tether chief technical officer Paolo Ardoino stated that the company had created a 3,000,000-Swiss franc trust fund with Lugano officials in order to encourage the adoption of Bitcoin ( BTC), Tether( USDT ) as well as the LVGA token. Ardoino stated that the project was designed to attract talent from the area to Lugano, and make the city a major European blockchain hub.

Ardoino stated, “We want to demonstrate that these tools, instruments, and currencies that were created can be actually put to use in a [locally controlled] vibrant environment such as the city of Lugano.”

The project will allow Lugano residents to pay their taxes with crypto. It will also extend payments for parking tickets, public service and tuition fees to students. Crypto payments are expected to be accepted by more than 200 local businesses and shops.

Ardoino mentioned the El Salvador legislators’ efforts in promoting cryptocurrencies. The country’s Bitcoin Law was implemented in September 2021. It allows all residents and visitors to use BTC as legal tender along with the U.S. dollars. In Lugano, and throughout Switzerland, the Swiss franc is legal tender.

Related: Mexican Senator to Propose Crypto Law: “We need Bitcoin as a legal tender”

Tether announced that it would establish a fund of 100 million Swiss Francs to finance blockchain-based startups and create crypto unicorns. This partnership will be funded by projects valued at $1 billion. Polygon will be an infrastructure partner in stablecoin settlements at Lugano.

Lugano, Switzerland’s 8th largest city with 63,000 inhabitants, will host the Bitcoin World Forum conference this October.

Opinion writer on 7trade7