Lugano Embraces Bitcoin in Effort to Become European Crypto Hub
Lugano, a city in the Italian-speaking part of Switzerland, is making significant strides to position itself as a European bitcoin hub. Approximately 350 shops and restaurants in the city now accept bitcoin as payment, supported by the city council's distribution of free crypto-payment terminals to retailers. Some municipal services, including pre-school childcare, can also be paid using bitcoin.
One notable example is a McDonald's near Lugano that accepts bitcoin via a contactless terminal, with a recent bill of 0.00008629 BTC, roughly equivalent to $8.80. This initiative is part of Plan B, launched in 2022 by Lugano in collaboration with the crypto platform Tether. The plan aims to educate the public about cryptocurrency and encourage its adoption.
Plan B leader Mir Liponi highlighted an experiment conducted in July where an individual survived for 11 days using only bitcoin for transactions amidst bank access issues. While groceries and home deliveries were successfully paid with bitcoin, some expenses such as energy bills and certain medical services were not fully payable via cryptocurrency.
About 110 crypto-sector companies have either relocated to or started operations in Lugano as part of the city's ongoing push towards embracing the digital currency. However, experts urge caution. Economist Sergio Rossi points out the volatility of bitcoin prices and the custodial risks associated with wallets, recommending that users convert bitcoin immediately into fiat currency. He also notes that Swiss bank deposits have insurance coverage up to 100,000 CHF.
Local officials acknowledge that while bitcoin can be legitimate, it is not without risks. Mayor Michele Foletti states that bitcoin is not a magnet for criminal money and notes that both fiat and cryptocurrency involve potential risks. The city of Lugano continues to actively promote cryptocurrency adoption while remaining mindful of its possible misuse.
