How This Swiss City Integrated Bitcoin Into Everyday Payments

The Swiss city of Lugano, through its voluntary Plan ₿ initiative launched with Tether, is integrating Bitcoin (BTC) and stablecoins (USDT) into everyday life, moving beyond marketing to structural financial overhaul. The system focuses on reducing merchant friction, as Lightning Network fees are under 1% compared to the 3% charged by credit cards. Merchants receive free POS terminals and can instantly convert crypto to Swiss francs (CHF) to avoid volatility. Residents can pay municipal bills, taxes, and fines using BTC or USDT via QR codes. A local loyalty token, LVGA, pegged to the franc, is earned as cashback and used for city services, creating a circular local economy. While the city does not hold volatile crypto, critics remain concerned about custodial risk for personal holdings. Lugano's model emphasizes practical workflows: free hardware for merchants, use for routine obligations, and a local token to retain value, positioning it as an alternative to CBDCs.

(Source：Cointelegraph)