Swiss City Lugano to Add Bitcoin as Legal Tender

Swiss City Lugano to Add Bitcoin as Legal Tender

March 16, 2022 0 By Keith Jacobs

Lugano is a city in Switzerland that has become the center of attention recently on social media forums around the world. The main reason behind this explosion in international media exposure is related to Bitcoin. Lugano has followed the footsteps of El Salvador and become another government-level region to recognize Bitcoin as a legal tender.

Under the current economic situation, many financial analysts claimed that some countries might find it a possibility to accept Bitcoin as a legal tender. At this stage, when the governments of many countries are at odds with their Central Banks, the Swiss financial system has made another bold move in this regard.

Swiss City is Planning to Become Hub of Crypto Transactions in Europe

At present, the narrative around cryptocurrency trading and mining is not very encouraging in any EU countries. Just a few days ago, ECB president Christine Lagarde called for stringent financial regulations on the cryptocurrency markets once again. Lagarde emphasized the importance of regulations on the digital asset markets to intercept the possibility of the Russian government financing their military excursion with the token reserves.

Furthermore, some EU politicians have spoken out about banning PoW cryptocurrencies on account of environmental repercussions. However, Michelle Folleti, the mayor of Lugano, recently declared Bitcoin and Tether as the de facto legal tender in the city. He also nominated a local blockchain native currency called LVGA points token as well.

Commenting on the recent event, the CTO of Tether Paolo Ardoino revealed that the partnership with Lugano city officials came with a $100 million fund that is meant to improve the development of local businesses and startups. Mayor Folleti also told the media that the city has been working on making the transition happen for the past 18 months.

Ardoino claimed that Lugano is trying to emulate Silicon Valley in terms of Bitcoin and cryptocurrency hub for digital currency activities in Europe. He shared his optimism for encouraging crypto-related startups to come to the city. He also claimed that the fund would be able to finance 500 scholarships for the students who are working on crypto and blockchain-related projects.