A city in Switzerland called Lugano is taking a page right out of El Salvador’s book. The region has announced that it will make bitcoin legal tender. In other words, bitcoin can be used just like fiat currency, and businesses and companies throughout the area will be required to accept it as a method of payment.
Switzerland Is Pushing Crypto Further
Switzerland has long been a huge crypto advocate, which is good given that the country has a longstanding history as a financial magnate. Have you ever heard a person say, “Deposit the money into my Swiss bank account?” If you have, there’s a good chance that person has made it in life, and their finances are squared away.
In addition, Switzerland is widely known and respected amongst crypto enthusiasts. The country boasts very lax crypto regulations and taxation laws, and it is also home to “Crypto Valley.” Taking its name from the Silicon Valley in Northern California – which is known for housing some of the world’s biggest tech conglomerates such as Facebook and Google – Crypto Valley hosts a wide array of digital currency and blockchain companies.
Aside from bitcoin, Lugano regulators have also said that Tether – a prominent stable currency – can also be used to purchase items and pay tax-related fees. In a press release, representatives of the city mentioned the following:
The memorandum of understanding signed between Lugano and Tether will encourage the adoption of blockchain technology on a local level and will allow the citizenry to pay taxes and fees for all services in bitcoin, Tether or stable coins based on the Swiss franc… Together, the two partners will work to achieve the shared goal of increasing the city’s blockchain capabilities and promoting Lugano as a new hub for the adoption of blockchain at a European level.
Lugano has stated that its big goal is to have all businesses within the region accepting bitcoin for goods and services by the end of the year. It commented:
The city aims to allow citizens and businesses to pay taxes, fees, goods, and services provided by the public body also in cryptocurrency, accepting only bitcoin, tether, and some Swiss franc-based stable coins.
Legitimacy Is Headed for BTC
The city is following in the footsteps of El Salvador, which is more than 4,000 miles away. Last summer, the Central American nation shocked the world when it announced that it would be declaring bitcoin legal tender beginning in September.
Despite receiving heavy backlash from financial organizations such as the World Bank and the International Monetary Fund (IMF), El Salvador stuck to its guns and has ultimately achieved a lot of success through its new bitcoin initiatives. Recently, the country was even able to build new businesses and even several schools through its BTC savings.