As part of a new agreement with the provider of the Tether (USDT) stablecoin, the Swiss city of Lugano, the economic centre of Italian-speaking southern Switzerland, is using cryptocurrency for tax payments.
In fact, according to a joint announcement made on Thursday, Tether Operations Limited, the blockchain-based platform that supports USDT, the world’s largest stablecoin by market capitalization, has partnered with the Lugano administration.
Additionally, Tether and the municipal government have collaborated to create a Center of Excellence for Blockchain Adoption. With the objective of making the city a significant European blockchain hub.
The goal of the partnership is to show how blockchain may be used in real-world scenarios by implementing it in the local community. Such as using bitcoin for payments and experimenting with blockchain solutions on a large scale. To tackle the scalability challenges of its crypto city infrastructure, Tether and the city aim to use the Lightning Network. Which is a second layer added to the Bitcoin (BTC) blockchain.
The ultimate goal is to accept crypto as payment for all goods and services
Lugano is to expand its efforts to allow individuals and businesses to pay their taxes in cryptocurrency in the near future. Subject to a number of legal approvals and infrastructural developments. The ultimate goal, according to the release, is to accept cryptocurrency as payment for all goods and services, effectively equating it to fiat cash.
Tether will also establish a multi-million-dollar fund as part of the agreement. In order to assist in the financing of blockchain-based enterprises and services in the region. Tether will also lend its experience and support to the city of Lugano in the form of cooperation with local colleges and research institutions to provide industry education.
The current relationship with Tether, according to Lugano Mayor Michele Foletti, will aid the city’s fintech efforts and development. He stated that the city of Lugano has been actively involved in crypto and blockchain technology in recent years. Citing its work on the LVGA Points citizen payment tokens, nonfungible tokens, and other blockchain developments:
“Lugano is putting money into its future. We’ve already introduced blockchain-based solutions. Such as the MyLugano app with its LVGA Points payment token, the Lugano digital franc. As well as the 3Achain blockchain infrastructure in recent years.”
The city of Lugano discusses the acceptance of crypto
The news comes as the city of Lugano and Tether prepare to host a live event on Thursday. In order to discuss the city’s acceptance of cryptocurrency, as announced last week.
The Swiss canton of Zug and the town of Zermatt, as previously reported, are among the cities and cantons in Switzerland that allow inhabitants to pay taxes in cryptocurrency.