Switzerland's Lugano makes Bitcoin, Tether, LVGA token legal tender

The 60,000 plus citizens of Lugano would now be able to transact, invest and pay taxes in Bitcoin, USDT Tether and LVGA token after all three cryptocurrencies were accepted as "de facto" legal tender in the city.

The announcement was made on Thursday by the Mayor of the city,  Michele Foletti, in an event, organised by the city in collaboration with Tether.

The collaboration between Lugano and Tether, termed Lugano's 'Plan B' aims at turning the city into a centre for blockchain adoption in Europe. The project announced as Lugano's 'Plan B' is aligned with the city's efforts to revitalise its position as a financial centre, after years of decline.

Bitcoin, which is the largest cryptocurrency by market cap is already recognised as legal tender in El Salvador. The President, Nayib Bukele is an ardent supporter of the cryptocurrency and trades for the country using his mobile phone. Bitcoin prices tumbled in the last 24 hours, dropping 3.98 per cent. The token is trading at $41,701 at 2.30 PM IST.

The USDT Tether, which is also recognised in the city of Lugano is a stablecoin, i.e its value remains relatively steady as compared to other cryptocurrencies because it is pegged to the US Dollar.

The third cryptocurrency recognised as de facto legal tender by the country is the LVGA token, which was launched by the city itself. The city of Lugano has taken many strides in the Web3 space. They have built their blockchain called 3Achain, which is already being used by approximately 30 partners from both public and private sectors in Switzerland. The city is also aiming to provide scholarships to over 500 students studying cryptocurrencies and Decentralized Finance (DeFi).

The mayor also announced that the Bitcoin World Forum would be held in Lugano on October 26-28.

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