Which Swiss City Aims to Become the Crypto Capital?
Joining El Salvador’s crypto revolution, cities worldwide are adopting cryptocurrencies as payment alternatives. One Swiss city has been working hard to position itself as a crypto hub and has managed to achieve a multitude of milestones within just two years.
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Whenever discussion arises about the Swiss regions most supportive of blockchain technology and cryptocurrencies, the Canton of Zug and Zermatt municipality often come to mind. The former, known as the Swiss crypto valley, is home to a plethora of blockchain startups, while the latter is a ski resort where Bitcoin can be used to pay taxes. However, this time our focus is on another city that has made even greater strides toward a comprehensive adoption of cryptocurrency.
As of March 2022, the municipal authorities of Lugano, located in the Italian-speaking canton of Ticino, decided to officially recognize Bitcoin (BTC), the stablecoin USDT (Tether), and the municipal Swiss-franc pegged stablecoin LVGA as legal tender. Lugano is the first European city where local merchants and government services began accepting cryptocurrencies in exchange for goods or services. Using LVGA, BTC, or USDT in restaurants, cafes, McDonald’s, and watch shops in Lugano is now as simple as making any other traditional payment.
The catalyst for such a decision was the company Tether, the issuer of the stablecoin USDT, which entered into a partnership and cooperation agreement with the Lugano administration.
On top of this, an investment fund of 100 million Swiss francs has been launched. This money is intended to bolster cryptocurrency and blockchain startups looking to do business in the region. Thus, it laid the foundation for the creation of a second Crypto Valley, forming another region set to compete with the canton of Zug for new crypto ventures, and potentially becoming a leading blockchain hub in Europe.
Aside from startups, Lugano's authorities also decided to motivate students. They've provided grants for the study of courses related to cryptocurrencies and blockchain technologies, available to anyone, not just the younger demographic.
There's also a new consultation center in the city that hosts regular informational events and networking opportunities. Since 2022, Lugano started organizing the Plan ฿ forum, a two-day conference dedicated to crypto mass adoption and the promotion of Bitcoin. The first forum attracted over 1700 attendees and garnered positive feedback, convincing the organizers to make it an annual event. The upcoming Plan ฿ is planned for October 20–21, 2023.
An advertisement for the upcoming Plan ฿ forum in Lugano. Source: planb.lugano.ch
Interestingly, the Salvadoran Ambassador to the United States participated in the Plan ฿ forum, where he announced a memorandum of economic cooperation between El Salvador and Lugano. The collaboration envisions an exchange of experiences in implementing and using Bitcoin across various sectors, as well as the initiation of student, talent, and educational program exchanges.
Lugano's Mayor, Michele Foletti, holds the belief that the partnership with Tether will help the city cement its status as the most innovative Swiss city receptive to cryptocurrencies and fintech. He noted that Lugano has consistently and actively been implementing crypto and blockchain technologies in recent years. This includes the creation of the MyLugano mobile app, the municipal payment token LVGA, Lugano's digital franc, and the 3Achain blockchain platform.
The functionality of the MyLugano mobile app is worth taking a closer look at.
MyLugano
The MyLugano mobile app is a “2-in-1” solution: it concurrently functions as a municipal marketplace for the city of Lugano and a digital LVGA wallet.
The app facilitates users to:
- Reserve and buy tickets for concerts and entertainment events in Lugano, and manage these tickets;
- Keep track of the LVGA balance (the new digital municipal cryptocurrency) and conduct bill payments, make transfers, purchase tickets, and more;
- Order the digital discount card called MyLugano Card;
- Receive discounts and cashback from associated partners;
- Get personalized offers from MyLugano Card partners and learn about their assortment of products and services, contact details, available discounts, promotions, etc.
In essence, the MyLugano mobile app allows its users to meet all their needs for booking establishments or hotels, paying for goods and services with cryptocurrency, and performing instant money transfers.
MyLugano: a municipal digital wallet and marketplace offering discounts and cashback deals. Source: advinser.it/en/mylugano-app
Conclusion
As observed, over just two years, Lugano has made remarkable progress in its pursuit to be recognized as the Swiss capital for cryptocurrencies and the largest blockchain hub in Europe. The widespread endorsement of cryptocurrencies and startups has channeled investment into the city, enticing new fintech projects to establish their headquarters, students to seek education, and Bitcoin maximalists to reside there. It appears that Zug, a canton in Switzerland, now faces stiff competition.
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