- Lugano, which has a population of just over 60,000 people, could face a severe labour shortage if it is able to recruit even a percent of the companies it hopes to attract.
- According to Pietro Poretti, the director of the City of Lugano, the decision to accept Bitcoin and Tether as legal tender took 18 months. In late 2020, the city began experimenting with blockchain technology and cryptocurrency payments by launching a loyalty programme using its own points token, LVGA.
- Tether’s CTO, Paolo Ardoino, said the business collaborated with the city to establish a $100 million incentive fund for entrepreneurs relocating their headquarters and staff to Lugano. Tether will also help build a major startup cluster in the heart of Lugano, which will house tech startups from all around the world.
The Swiss city of Lugano has stated that cryptocurrencies would be accepted as legal cash. Bitcoin (BTC), Tether (USDT), and Lugano’s own LVGA Points currency will be recognised as de-facto currencies, according to Michele Foletti, the mayor of the City of Lugano. The news was made during Lugano’s Plan B event, when city leaders and Tether’s CTO Paolo Ardoino discussed the consequences of the progressive choice. According to Pietro Poretti, the director of the City of Lugano, the decision to accept Bitcoin and Tether as legal tender took 18 months. In late 2020, the city began experimenting with blockchain technology and cryptocurrency payments by launching a loyalty programme using its own points token, LVGA.
El Salvador’s Move
The LVGA coin was used in all transactions on Lugano’s Proof-of-Authority blockchain, which the city established last year. El Salvador’s move in September, when the government became the first to recognise a cryptocurrency as de-facto money, accelerated the decision to adopt Bitcoin as legal cash, albeit none of the panellists said so officially. Lugano’s history of absorbing technological innovations, according to Poretti, drove the decision to declare cryptocurrencies legal tender. During the panel, he stated, Lugano is the economic capital of southern Switzerland and has always been a leader in the creation of new opportunities.
The city cooperated with Tether and recognised its proprietary stablecoin, USDT, as legal tender alongside Bitcoin to accelerate its blockchain adoption. Collaborating with a firm of Tether’s calibre acts as a magnet, attracting other enterprises to Lugano. Companies that want to relocate to Lugano will be able to take advantage of a significant incentive package that the city has put together with the support of Tether. Tether’s CTO, Paolo Ardoino, said the business collaborated with the city to establish a $100 million incentive fund for entrepreneurs relocating their headquarters and staff to Lugano. Tether will also help build a major startup cluster in the heart of Lugano, which will house tech startups from all around the world.
Polygon was named as Ardoino’s major infrastructure partner in Lugano for supporting stablecoin payments. Polygon is the second-largest network supporting Tether’s USDT stablecoin, after Ethereum. The low latency, high scalability, and low cost of Polygon will allow for seamless settlements. This will be especially important given the expected scope of crypto adoption in Lugano. There has already been a widespread attempt, according to Poretti, to extend bitcoin payments to the public sector. Virtually all public services, including personal and municipal taxes, citizenship fees, access to public infrastructure, and document issuing fees, are already available in cryptocurrency.
In the private sector, a similar level of acceptance is projected. Over 200 firms, according to Poretti, have already built the technology required to accept BTC, USDT, and LVGA payments. Over 5,000 Lugano residents have used the city’s LVGA payment token to pay these businesses in the last month, and have been interacting with the digital wallet on a daily basis. The city’s intentions to transform into a crypto utopia appear well-thought-out.
ALSO READ: Fear of nuclear disaster in Europe sheds the crypto market
Severe Labour Shortage
Lugano, which has a population of just over 60,000 people, could face a severe labour shortage if it is able to recruit even a percent of the companies it hopes to attract. Tether and Bitfinex have already begun working with Lugano’s three major institutions to promote blockchain and crypto-focused education, according to Ardoino.
The two businesses are collaborating with academics to develop curriculums that will assist colleges in producing a workforce that is well-versed in blockchain technology. Ardoino also revealed that the corporations had put aside funding for 500 scholarships to be given to students studying blockchain and cryptography. This isn’t a publicity stunt, according to Ardoino. It’s a series of tangible initiatives to make Lugano the world’s blockchain capital.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/03/05/lugano-has-made-cryptocurrency-and-fiat-currency-legal-currency-aiming-to-make-switzerland-a-next-cryptocurrency-utopia/