Lugano Ties Its Crypto City Dream to Tether

A few dozen shopkeepers and business people gathered in the blue-carpeted hall of a conference center in the Italian-speaking city of Lugano, Switzerland, on Monday to learn how to accept cryptocurrencies. Paolo Ardoino, the chief technology officer of Tether, the company behind one of the world's most popular stable coins, addressed them with a group of accountants, entrepreneurs, and city officials. Robert Bregy, the general secretary of Lugano, says that the merchants in attendance were much more interested in these new kinds of payments than they expected.

The meeting is part of the Plan B initiative which was launched in March of 2022. The plan includes investments in business and educational programs, as well as the organization of industry events, but the most exciting aspect is that the city will start accepting payment for municipal taxes and access to some public services in the future. The city committed to encouraging and aiding local businesses to include those cryptocurrencies in their accepted payment methods.

While boasting stunning vistas and a relatively mild climate, the city still lags behind other parts of Switzerland in terms of economic growth. The plan seems to have worked so far, as the city has been under siege from companies and students looking to relocate there. At least 10 companies are looking to relocate to Switzerland, which is much higher than usual, according to a lawyer with Kellerhals-Carrard.

Ardoino says that Plan B is a way to get people to come to Lugano. Since the plan was announced, the company has become the defacto project manager of the city's digital capabilities, wielding significant clout in shaping the city's digital fortunes.

The German-speaking canton of Zug is renowned for itsCrypto activity, which over time has acquired the nickname of "Crypto Valley". Zug allows cantonal taxes to be paid in ether.

The plan of Lugano seems to push the envelope further, extending the acceptance of cryptocurrencies to a wider range of public services, and in general integrating them more deeply into its economic fabric. Bregy says that the city of Lugano is an ideal place to live, do business, and thrive because of its tax reasons.