The city of Lugano, Switzerland, has boldly stepped into the future of finance by adopting digital currencies for municipal transactions. This pioneering initiative, announced on December 5, allows the city to accept Bitcoin and Tether for tax payments and other municipal fees.
This development is not just a technological leap but a strategic component of Lugano’s “Plan B.” This venture, in collaboration with Tether, aims to harness Bitcoin technology to revolutionize Lugano’s financial system.
Bitcoin and Tether Approved for Tax Payments
Underpinning the initiative is the Swiss cryptocurrency platform Bitcoin Suisse, which plays a critical role as the technical partner, facilitating the seamless integration of cryptocurrency payments.
The convenience offered by this new system is noteworthy. Lugano’s residents can now easily settle their tax obligations and other services by scanning the Swiss QR-bill code on their invoices. This process enables transactions through their preferred mobile wallet using the chosen cryptocurrency.
Armin Schmid, Chief Product Officer at Bitcoin Suisse, lauded this development, stating,
“It is great to see that more and more Swiss municipalities are offering payments in cryptocurrencies as an option available to both citizens and companies, complementing traditional payment methods such as post-office counters and e-banking platforms.”
However, Lugano is no stranger to blockchain technology. The city has previously integrated blockchain solutions, including the Polygon chain in the MyLugano app, the LVGA Points payment token, the Lugano digital franc, and the 3Achain blockchain infrastructure.
Lugano’s approach mirrors a growing global trend toward embracing digital assets in government transactions.
Switzerland tops crypto ownership and usage in Europe.
A Growing Trend of New Crypto Use Cases
Similarly, Banco do Brasil, Brazil’s oldest bank, announced a partnership with Bitfy in February 2023. The partnership enabled tax payments using digital assets.
This collaboration signified a major leap in adopting “new financial technologies.” It offered greater convenience to users while expanding options for tax collection authorities.
Lucas Schoch, CEO of Bitfy, emphasized the significance of this development at the time:
“The new digital economy is a catalyst for a future full of advantages. This partnership makes it possible to expand the use and access to the ecosystem of digital assets with a national scope.”
Overall, the adoption of digital currencies for governmental transactions, as seen in Lugano and Brazil, indicates a significant shift. It underscores the growing acceptance of crypto as a legitimate and practical tool in everyday financial operations.
Source : BeInCrypto by Kyle Baird / Dec 6, 2023