Switzerland's Lugano Becomes a Cryptocurrency Hub: How Bitcoin and USDT Are Reshaping Municipal Services

Lugano, Switzerland has emerged as one of Europe’s most progressive cities in embracing blockchain technology for everyday transactions. The Plan ₿ initiative, launched in collaboration with Tether back in 2022, has evolved from an experimental project into a thriving ecosystem where residents now settle municipal obligations—from property taxes to parking violations and school fees—directly using Bitcoin (BTC) and Tether (USDT).

The Merchant Ecosystem Expansion

The real measure of Plan ₿’s success lies in merchant adoption. Today, more than 350 businesses across Lugano have integrated cryptocurrency payment infrastructure, fundamentally changing how commerce operates in this Alpine city. What makes this particularly noteworthy is the cost structure: transactions processed via Bitcoin’s Lightning Network incur fees typically under 1%, creating a compelling advantage over traditional payment systems that charge approximately 3% in processing costs.

To remove barriers for merchants, Lugano’s municipal authorities distributed smart POS terminal devices at no cost, effectively lowering the technical and financial hurdles to entry. This infrastructure-first approach has proven instrumental in achieving such widespread adoption.

Building a Circular Crypto Economy

Beyond simple payment acceptance, Lugano has engineered a sophisticated circular economy framework through the MyLugano application. Users participating in this ecosystem gain the ability to earn up to 10% cashback in LVGA tokens whenever they spend cryptocurrency at partner merchants. This token-based rewards system isn’t merely a marketing gimmick—LVGA tokens function as genuine municipal scrip, redeemable for public services, parking access, and childcare arrangements.

This design creates a self-reinforcing loop: merchants accept crypto → users get rewarded in tokens → tokens drive repeat spending on municipal services, strengthening the local financial ecosystem.

Attracting the Crypto Industry

The institutional impact cannot be overstated. Lugano’s forward-thinking regulatory environment and functional blockchain infrastructure have drawn over 110 crypto-related startups to establish operations in the region, transforming the Swiss city into a legitimate blockchain innovation hub.

Validation Through Global Participation

The trajectory of the Plan ₿ Forum offers a telling metric of the project’s momentum. The fourth edition, convened in October 2025, drew 4,000 delegates representing 64 different nations—a remarkable 140% surge in attendance since the initiative’s inception. This growth trajectory signals that Lugano’s experiment with cryptocurrency integration has transcended local curiosity to become a model warranting international scrutiny and participation.

The convergence of user-friendly infrastructure, merchant incentives, and regulatory clarity has positioned Lugano, Switzerland as a living laboratory for how blockchain technology integrates into municipal governance and everyday commerce.