In Lugano, Switzerland, Bitcoin Lightning fees are under 1%, much lower than credit card networks. Residents can pay bills in BTC or USDT. The city balances BTC for payments, USDT for stability, and LVGA as a local loyalty token. The city converts payments to Swiss francs instantly through Bitcoin Suisse to limit exposure to crypto price volatility.

Lugano’s Plan ₿ partnership with Tether is an overhaul of the city’s financial system. Merchants benefit from lower fees with Bitcoin Lightning Network. The city uses BTC, USDT, and LVGA for payments and loyalty program. Free smart POS terminals from GoCrypto help merchants accept crypto seamlessly.

MyLugano app facilitates a circular economy where users earn LVGA tokens for using crypto. Tokens are pegged to the Swiss franc and accepted for city services. Residents can pay all municipal invoices with Bitcoin or Tether. Institutional interest in Plan ₿ is growing, with a focus on retail payments and digital bond issuance.

Despite the progress, some in Lugano are skeptical due to custodial risks and psychological adoption challenges. The city’s blueprint for the future includes free hardware for merchants, using crypto for routine obligations like taxes, and implementing a local loyalty token. Lugano’s model contrasts with CBDCs, offering a decentralized alternative to state-issued digital currencies.

Read more at Cointelegraph: How This Swiss City Integrated Bitcoin Into Everyday Payments