Lugano, a stunningly beautiful city in the Italian-speaking region of Switzerland—a region known as Ticino—has become a global leader in adopting cryptocurrency as a key medium of exchange. Now, under the leadership of Mayor Michele Foletti, the city is moving in a robust direction to adopt bitcoin and other cryptocurrencies in everyday commercial activity. As a result, digital currency is accepted at about 350 local stores and eateries. This new initiative is nothing but a call to use bitcoin. It further solidifies Lugano’s role as a pivotal player in Europe’s growing cryptocurrency ecosystem.
In recent years, bitcoin has gained traction across the globe, especially following El Salvador’s historic decision in 2021 to recognize it as legal tender alongside the US dollar. Regulatory and legal decisions such as these have lasting impact. In Lugano, local officials aren’t simply announcing receptiveness to bitcoin—surely an attractive aspect of the program to many residents and businesses.
Las Vegas proves its commitment to the cryptocurrency space by planning to erect a statue of Satoshi Nakamoto. His real identity is as cryptographic creator of bitcoin. This statue, referred to as “The B,” is a truly distinctive artistic memorial. Beyond publicity, it’s an excellent educational tool, helping to demystify cryptocurrency for the public. It hasn’t been without its challenges. Recently, the piece was vandalized and later found tossed into Lake Lugano.
Mir Liponi, director of the Plan B hub, recently conducted an experiment in Lugano that lasted for 11 days, utilizing bitcoin for various transactions. To his surprise, he found that dozens of services accepted bitcoin by now. There were some basic needs that had yet to make the jump—public transport and some bills had not yet adopted crypto.
“It’s missing public transportation at the moment… another one is fuel. Groceries are okay. I got things delivered at home, even,” – Mir Liponi.
Even with all its struggles, Lugano’s administration seems undeterred and pumped about its cryptocurrency project. In an open letter announcing the initiative, Mayor Michele Foletti sought to quell worries about possible criminal activity associated with the city’s burgeoning crypto ecosystem.
“No. You can use fiat money to do something good or something bad,” – Michele Foletti.
Foletti continued to clarify that cash is indeed the preferred method for bad actors. Consequently, bitcoin is less beguiling for such ends.
As it stands in Lugano, though, you can pay with bitcoin for a cup of coffee. One of the most popular use cases is micropayments, where you can pay a bill with only 0.00008629 bitcoin, about $8.80. This increasing openness from the local business sector is a harbinger of the rapidly approaching digital currency adoption, which will have productive implications across all communities.
Cherubino Fry, a local shopkeeper and bitcoin evangelist in Lugano was hopeful bitcoin would one day become an accepted currency. He’s confident that as more residents and visitors get used to using crypto, adoption will keep climbing.
Vincent Charles, CEO of Unchain Data, emphasized Lugano’s rise as an innovation hub for cryptocurrency. Over 110 companies from the crypto sector have moved to the city or started their companies there. This boom further reinforces Lugano’s dedication to creating a hub for a thriving digital economy.
Not all Triangle residents feel the same way about cryptocurrencies. Lucia, a local student studying at the University of Lugano, has deep-rooted fears about cryptocurrencies. She says they are too often associated with criminalization and speculation.
“At the University of Lugano where I study there’s a club to promote bitcoin and everything. I do find it surprising that institutions such as my university would promote cryptocurrencies so much. I think they are associated with crime, with the dark web and speculation,” – Lucia.
Lucia warned that large numbers of people get wiped out by making these investments, as many crypto markets crash.
“A lot of people lose their money because they invest in a cryptocurrency and then it crashes,” – Lucia.
Nonetheless, these weaknesses do not seem to be holding back Lugano from pursuing its vision of becoming the premier European hub for cryptocurrency. The local administration is enthusiastic about wooing bitcoin business, hoping to foster a culture in which new money can flourish.
Lugano’s unusual approach sets it apart from other cities that have recently adopted cryptocurrencies. Indeed, just last year, Ljubljana in Slovenia was crowned the world’s most crypto-friendly city with Hong Kong and Zurich in second and third place respectively. Lugano’s plan revolves around making digital currency an integral part of daily life. Local officials are ready to embrace DOTs’ concerns and address the challenges that accompany its use.
Led by Professor Rossi from the local university, the coalition focused on calling attention to key risks inherent in cryptocurrency transactions. He also pointed to the fact that millions of Americans are forced to rely on digital third parties to hold their bitcoin. This dependency puts them at acute risk compared to their analog, deposit guarantee-providing banking system.
“And therefore, I lose the corresponding amount forever. By contrast, in Switzerland, all bank deposits are guaranteed up to the amount of 100,000 Swiss francs ($125,000; £94,000). This means that if the bank where my savings are recorded goes bankrupt, I can recover them up to this amount,” – Mir Liponi.
Despite these dire warnings, many residents are enticed by the liberating attributes that come with utilizing bitcoin. One resident remarked,
“What’s great about paying in bitcoin is the feeling of freedom it gives you,” – Nicolas.
Lugano continues to lead the way in the crypto world. The city has a strong commitment to fostering education and acceptance as well as being proactive to address community concerns over its use. The city generally maintains a bullish stance on digital currency. That might provide the first real impetus to other municipalities to begin looking down the same road.