Swiss City signs partnership with Tether to enable citizens to pay taxes in cryptocurrency

The Swiss city of Lugano is known for technical innovation, and is aiming to establish itself as a hub for cryptocurrencies. The City recently signed a partnership with Tether to establish a center of excellence for blockchain adoption which aims to allow its citizens and businesses to pay their taxes in cryptocurrencies.

The partnership was announced by Tether via Twitter, and outlined how the city of Lugano and Tether would be teaming up to help Lugano become a European Bitcoin capital. Tether also plans to create a multi-million dollar fund as part of the partnership, a fund that will support blockchain-based startups and blockchain services in Lugano. 

The Mayor of  Lugano, Michele Foletti, commented on Lugano’s increasing adoption of cryptocurrency, speaking on the subject at Lugano’s NFT week in November last year he noted:

"We have always followed the development of new technologies very closely and we have identified blockchain as a topic of great interest for both multinational and local companies, citizens and businesses. We believe that a city must be at the service of citizens and with these initiatives we intend to place Lugano as a top-level player on the international scene, for all applications related to this technology."

In a recent statement, Mayor Foletti also noted:

"Lugano is investing in its future.The city has already implemented blockchain-based solutions including the MyLugano app and its LVGA Points payment token, the Lugano digital franc and the 3Achain blockchain infrastructure. They believe in the technology to scale and build a stronger, open, transparent and smart city."

As part of the partnership, Lugano will use the Lightning Network, a second layer added to Bitcoin’s blockchain, that will allow it to overcome scalability issues. Other approved cryptocurrencies that will be accepted include Bitcoin, Tether, and select CHF-based stablecoins (Luga, LVGA) that will then be converted into the local currency.

Businesses in Lugano will be aided by Tether to build an infrastructure which can integrate their traditional payment systems with the approved stablecoins.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.