Key points to remember
- Since 2022, the city of Lugano, in the canton of Ticino in Switzerland, has been rolling out an ambitious project called Plan B to integrate cryptocurrencies into the daily lives of its residents.
- This scheme allows citizens to pay taxes and make purchases using Bitcoin (BTC), Tether (USDT) and LVGA, a local stablecoin linked to the Swiss franc.
- The project is based on a strategic partnership with Tether, issuer of the USDT stablecoin and a major but controversial player in the crypto sector.
- Nearly 400 merchants already accept these digital payment methods.
- The municipality is supporting this adoption with educational programmes and dedicated financial initiatives.
- Crypto culture is promoted through powerful symbols, notably the statue of Satoshi Nakamoto, the anonymous creator of Bitcoin, which was recently stolen.
- Lugano seeks to combine technological innovation, economic attractiveness and an image as a forward-thinking city, while addressing technical, regulatory and social challenges.
Located in the heart of the canton of Ticino, in Italian-speaking Switzerland, the city of Lugano is gradually establishing itself as a major player in the adoption of cryptocurrencies in Europe. Known for its exceptional natural setting and strategic location between Milan and Zurich, Lugano is now seeking to distinguish itself in another way: by becoming the European capital of cryptocurrencies.
Under the leadership of its local elected officials, notably Mayor Michele Foletti, the municipality has chosen to embrace the blockchain revolution. The stated objective is clear: to create an ecosystem where distributed ledger technology is not just a concept, but a concrete tool for economic and social transformation.
The ambition is being realised through a close partnership with Tether, the company behind the USDT stablecoin, which is contributing its expertise and resources to the project, dubbed Plan B. The partnership aims to build a robust digital infrastructure capable of facilitating payments, encouraging innovation and attracting blockchain start-ups to the region.
Plan B: the project that aims to revolutionise municipal payments
The Plan B project, launched in 2022, is the cornerstone of Lugano’s strategy to integrate blockchain into the local economy. The name refers to Bitcoin (‘B’ as in Bitcoin), underlining the city’s ambition to offer a digital alternative to traditional financial systems.
Plan B aims to make it possible to use cryptocurrencies in all everyday transactions: in-store purchases, payment for municipal services, taxes, and even funeral expenses. To achieve this, Lugano is relying on modern technologies, notably the Bitcoin Lightning network, which enables fast and secure transactions.
To facilitate this transformation, two major funding initiatives have been set up: a CHF 100 million fund to attract blockchain start-ups, and a CHF 3 million fund to support local businesses in adopting cryptocurrencies.
Beyond the financial aspect, Plan B is also developing an institutional blockchain platform called 3Achain, which manages payments and ensures transaction traceability. This system is accessible via specially designed payment terminals or mobile applications.
User experience and everyday payments
Integrating cryptocurrencies into everyday life is not without its challenges. A real-life example illustrates this reality: a customer wanting to pay for a porchetta sandwich in Bitcoin encounters technical difficulties. Several attempts are necessary before the transaction is accepted, resulting in a wait of several minutes and additional fees.
This case highlights the current limitations of the technology, particularly in terms of usability and speed, which may hinder wider adoption. Merchants must learn to master these new tools, while consumers must get used to processes that are even less fluid than traditional payments.
Despite these obstacles, nearly 400 businesses in Lugano now accept Bitcoin, Tether or LVGA. This gradual adoption is accompanied by a municipal desire to simplify integration by providing compatible terminals free of charge and training users.
Crypto culture and symbols: the statue of Satoshi Nakamoto
Beyond the financial and technical aspects, Lugano cultivates a strong identity around cryptocurrency. In October 2024, the city unveiled a statue in honour of Satoshi Nakamoto, the mysterious creator of Bitcoin, whose identity remains unknown.
The work, created by Italian artist Valentina Picozzi, depicts a hooded man sitting cross-legged, composed of thin vertical metal bars. This design symbolises Satoshi’s evanescence and mystery: visible from certain angles, the statue seems to disappear from others.
Image source: Tether
This statue was unveiled during the third edition of Forum Plan B, an annual event bringing together blockchain experts and enthusiasts. It embodies Lugano’s commitment to becoming a hub for digital innovation and a cultural reference point for the crypto community.
However, in August 2025, the statue was mysteriously stolen before being found in Lake Lugano. This incident sparked a strong response from the community, reinforcing the symbolism attached to this work and to the city itself.
Economic and educational initiatives
Lugano is not limiting itself to the adoption of cryptocurrencies alone. The city is also investing in the economic and human ecosystem that will sustainably support this transition.
The 100 million Swiss franc fund aims to attract innovative start-ups in the blockchain field. Several companies from Switzerland, Italy and even Dubai have already chosen to set up in Lugano, attracted by its favourable environment and modern infrastructure.
At the same time, the municipality is developing educational programmes, notably through the “Plan B Summer School“, in partnership with local universities. This training aims to prepare students for careers in blockchain, financial risk management and digital technologies.
Finally, the city is offering 500 university scholarships dedicated to these fields, with the aim of building a new generation of professionals capable of driving innovation in the region.
Financial innovation: blockchain bonds
Lugano is also innovating in the financial sphere. In 2023 and 2024, the city issued two digital bonds on the blockchain, each worth CHF 100 million. These bonds enable the local authority to raise funds on the financial markets more efficiently and transparently.
These instruments, dual-listed on the SIX Digital Exchange (SDX) blockchain platform and on the traditional Swiss stock exchange, are accessible to both traditional investors and blockchain players.
The bonds have a high rating (Aa3 by Moody’s), equivalent to that of traditional bonds, reflecting the markets’ confidence in this innovation.
For the municipality, this method offers increased flexibility, reduces administrative costs and places Lugano at the forefront of modern finance.
Tether: a strategic and controversial partner
The partnership with Tether is at the heart of the Plan B project. Tether is the issuer of the USDT stablecoin, the most widely used stable cryptocurrency in the world, whose value is theoretically indexed to the US dollar.
For Lugano, Tether brings its technical expertise, network and financial resources. This partnership has enabled the development of the infrastructure necessary for the implementation of cryptocurrency payments.
However, Tether faces recurring controversies, particularly regarding the transparency of its reserves and the actual stability of its stablecoin. This situation requires the city to manage the risks associated with dependence on a private actor that is not immune to criticism.
Despite these reservations, Tether CEO Paolo Ardoino sees this partnership as a form of philanthropy aimed at promoting wider adoption of cryptocurrencies globally.
Adoption by merchants and the population
The city is already seeing encouraging results: nearly 400 merchants accept payments in Bitcoin, Tether or LVGA. Among them are major bands such as McDonald’s, a sign of growing adoption.
The MyLugano platform, which manages digital wallets, has more than a third of the population registered, with around 8,000 monthly transactions on the 3Achain blockchain.
The goal is ambitious: by 2025, all merchants in Lugano should be able to accept cryptocurrencies, making the city a true European laboratory in this field.
How does Lugano compare to Zug and Salvador?
Lugano is not the only Swiss city betting on blockchain. The city of Zug, nicknamed Crypto Valley, is already a historic centre of crypto innovation in Europe, home to nearly half of Switzerland’s blockchain start-ups.
Unlike Zug, which is primarily a technological ecosystem, Lugano aims for broader integration into everyday life and public finances.
On a global scale, El Salvador is often cited as the first country to have adopted Bitcoin as its official currency, imposing its use on merchants. Lugano, on the other hand, favours voluntary adoption, leaving it up to merchants to decide whether or not to equip themselves.
This more gradual approach is seen as more realistic and suited to the European context.
Issues and risks that should not be overlooked
The integration of cryptocurrencies into a city carries significant risks and challenges. First, dependence on a private partner such as Tether exposes Lugano to uncertainties related to the governance and stability of this stablecoin.
Secondly, the volatility inherent in cryptocurrencies may deter some users, even though stablecoins are designed to limit this risk.
From a regulatory perspective, the Swiss authorities remain cautious, which means Lugano must navigate between innovation and compliance.
Finally, the general public must be made aware of the challenges and risks of cryptocurrencies in order to avoid misunderstandings and financial losses.
Conclusion: a model to follow, under certain conditions
Lugano is charting an ambitious and innovative course in the adoption of cryptocurrencies in Europe. Thanks to Plan B, the city is combining economic development, technological innovation and cultural commitment to become a model to follow.
While many challenges remain, this experiment offers a concrete glimpse of the possibilities and limitations of integrating cryptocurrencies into local systems. Other European cities are closely watching this Swiss laboratory, which could inspire future initiatives on a continental scale.
While Lugano embodies a pioneering model for the integration of cryptocurrencies, it is essential to maintain a balanced perspective. Innovation must not overshadow issues of security, transparency and social acceptability. The widespread adoption of cryptocurrencies requires ongoing education and increased vigilance in the face of the risks inherent in this still young and rapidly evolving world. Lugano’s success will depend as much on its infrastructure as on the trust it is able to build with its citizens and partners.
Towards 100% crypto citizenship and residency through investment
Long confined to traditional bank transfers, the citizenship and residency by investments market is now adapting to the rise of digital wealth. In 2025, several jurisdictions are innovating by accepting Bitcoin (BTC), Ethereum (ETH) or stablecoins as means of financing to obtain a second passport or golden visa.
For example, countries such as Vanuatu and the Caribbean islands now allow authorised agents to receive and convert cryptocurrencies for investment programmes. El Salvador even offers a 100% crypto-native procedure, while Dubai is attracting investors with an adapted legal framework and the growing acceptance of cryptocurrency payments in real estate.
An article on Crypto et mobilité mondiale : ces pays qui ouvrent leurs frontières aux investisseurs en Bitcoin, explores these destinations in detail, including their terms and conditions, advantages, and precautions to take before embarking on such ventures in the blockchain era.
