The Swiss city of Lugano accepts Bitcoin and Tether for tax payments
The city of Lugano, Switzerland, has boldly stepped into the future of finance by introducing digital currencies for municipal transactions. Announced on December 5, this pioneering initiative will allow the city to accept Bitcoin and Tether for tax payments and other municipal payments.
This development is not only a technological leap, but also a strategic part of Lugano's “Plan B”. This venture, in partnership with Tether, aims to use Bitcoin technology to transform Lugano's financial system.
Bitcoin and Tether are allowed for tax payments
Initiative-based Swiss cryptocurrency platform Bitcoin Suisse plays a critical role as a technical partner, facilitating the seamless integration of cryptocurrency payments.
The convenience offered by this new system is noteworthy. Lugano residents can now easily resolve their tax obligations and other services by scanning the Swiss QR-bill code on their invoices. This process enables transactions through the selected mobile wallet using the selected cryptocurrency.
Armin Schmid, Chief Product Officer at Bitcoin Suisse, praised this development;
“It is great to see that Swiss municipalities are offering citizens and companies an alternative to payments in cryptocurrencies, complementing traditional payment methods such as post-office counters and e-banking platforms.”
However, Lugano is no stranger to blockchain technology. The city has already integrated blockchain solutions including the Polygon chain in the MyLugano app, the LVGA points payment token, the Lugano digital franc and the 3Achain blockchain infrastructure.
Lugano's approach reflects a growing global trend towards adopting digital assets in government transactions.
Read more: How to Reduce Your Crypto Tax Liability: A Comprehensive Guide
A growing trend of new crypto use cases
Similarly, Brazil's oldest bank, Banco do Brasil, announced a partnership with Bitfy in February 2023. The collaboration enabled tax payments using digital assets.
This collaboration marked a significant shift in the adoption of “new financial technologies.” It has provided greater convenience to consumers while expanding options for tax authorities.
BitFi CEO Lucas Schach emphasized the importance of this development at the time.
“The new digital economy will bring many benefits in the future. This partnership will allow the ecosystem of digital assets to expand its use and reach at the national level.”
As seen in Lugano and Brazil in general, the adoption of digital currencies for government transactions represents a major shift. It highlights the growing acceptance of crypto as a legal and practical tool in everyday financial operations.
Disclaimer
Adhering to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This newsletter aims to provide accurate and up-to-date information. However, readers are advised to independently verify the facts and consult with experts before making any decisions based on this content. It operates without personal beliefs, emotions or biases, providing data-driven content. A human editor carefully reviews, edits, and approves the article for publication to ensure relevance, accuracy, and compliance with BeInCrypto's editorial standards.
