The decision to accept Bitcoin and Tether as legal tender was 18 months in the works, said Pietro Poretti, director of the city of Lugano. The city began experimenting with blockchain technology and cryptocurrency payments in late 2020 by setting up a loyalty program using its proprietary points token called LVGA. Making Bitcoin a legal tender will allow people to pay taxes and government services in Bitcoin and make daily transactions with businesses. In December 2018, the Federal Council published a comprehensive report on the legal framework for DLT and blockchain in Switzerland.1 The report generally concluded that the Swiss legal framework already provides in principle for appropriate regulations covering issues related to the development of new technologies such as DLT. However, a selective need for action and improvement has been identified in certain areas of private law, financial market law and insolvency law. In this context, on 22 March 20192 the Federal Council published a draft law on blockchain and DLT (“draft law DLT”) and the message to the draft law DLT (“Dispatch”) on 27 November 2019.3 On 25 September 2020, the Swiss Parliament adopted the Law on Distributed Ledger Technology (“DLT Act”). The DLT Act represents an “umbrella legislation” that introduces a new concept of “DLT securities” into the Swiss Code of Obligations, which allows the tokenization of rights, claims and financial instruments (see below, “Introduction of DLT securities”). In addition, the DLT Act provides for the introduction of a new category of licenses as a DLT trading platform under the Financial Market Infrastructure Act (“FMIA”) (“see below, “DLT Trading Platform”) and certain clarifications on the treatment of cryptocurrencies in Swiss insolvency proceedings (see below, “Insolvency”). The amendments to the Swiss Code of Obligations and the Federal Act on Intermediate Securities provided for in the DLT Act, which allow the creation of DLT securities based on the general ledger, entered into force on 1 February 2021. Finally, at its meeting on 18 June 2021, the Federal Council published the remaining provisions of the LLT Act, which entered into force with the Implementing Ordinance on 1 August 2021. Lugano, which has just over 62,000 inhabitants, has partnered with stablecoin issuer Tether to move forward and enable the purchase of goods and services using Bitcoin, Tether and Lugano`s LVGA Points token. Poretti said the decision to make cryptocurrencies legal tender was driven by Lugano`s history of adopting technological developments.
Ardoino cited the work done by el Salvador`s lawmakers to introduce cryptocurrencies. In September 2021, the country`s Bitcoin law went into effect, allowing all residents and visitors to use BTC alongside the US dollar as legal tender. The Swiss franc is still legal tender in Lugano and throughout Switzerland. The city of Lugano, in southern Switzerland, predicts that many local businesses will accept certain cryptocurrencies as “de facto” legal tender as part of a partnership with Tether. Switzerland`s eighth largest city, Lugarno, has announced plans to make bitcoin legal so that its citizens can pay for utilities or taxes in bitcoin. Lugano is not the first jurisdiction to declare cryptocurrency as legal tender, with El Salvador announcing it in September 2021. The announcement follows Lugano`s previous collaboration with 200 organizations to drive the implementation of Bitcoin and Lightning network payments. Whether tokens can actually be “owned” depends in particular on whether they are considered securities or not. Under Swiss law, it is not disputed that securities may lawfully be in possession. When it comes to tokens that are not considered securities, i.e. cryptocurrencies such as Bitcoin, the issue of ownership is currently unresolved. The majority of Swiss scientists currently believe that cryptocurrencies are not a “thing” within the meaning of Swiss civil law due to their lack of tangibility and for other reasons.42 “This is probably the most important thing about this project (plan₿).
El Salvador`s GDP grew by 10% and its tourism by 30% after Bitcoin was declared legal tender. Imagine what we can do in a city in central Europe. The initiative was announced last week at a “Plan B” event hosted by Lugano Mayor Michele Foletti, who said it would also serve as a “beacon for green finance” by using green methods to promote bitcoin mining. Lugano may be about to initiate the process of making bitcoin as legal tender. Still, it`s certainly not the first to do so. It`s not even the second one. Senator Indira Kempis has announced that she will soon propose a crypto law to make cryptocurrencies legal tender and spread awareness, education and financial inclusion for it. At Thursday`s “Plan B” event, hosted by Lugano Mayor Michele Foletti, the move was described as a “de facto” legalization, as the Swiss franc will certainly remain the real legal tender in Lugano and elsewhere in Switzerland. In an effort to become the European capital of Bitcoin, Lugano, Switzerland, has partnered with stablecoin issuer Tether to establish Bitcoin, Tether and Lugano`s LVGA Points tokens as essentially legal tender in the city. In this issue of “Weekly Recap,” NLW reviews the state of key economic, bitcoin, and economic narratives, from the institutional supply of Bitcoin to bitcoin as legal tender to temporary inflation.
Lugano is located in the canton of Ticino in Switzerland – which ranks eighth in terms of gross regional product – and is probably betting that the city`s economic activity will increase, as El Salvador has done with Tether`s CTO Paolo Ardoino, who claims that El Salvador`s gross domestic product has increased by 10% and tourism by 30%. after Bitcoin has been declared legal tender. Related: Mexican Senator Proposes Crypto Law: `We Need Bitcoin as Legal Tender`] El Salvador`s Millennial President Narib Bukele sent the bill to a vote. The price of Bitcoin after the vote was $34,239.17. The president had also stated that there would be no capital gains tax on Bitcoin exchanges and that cryptocurrency entrepreneurs would be entitled to permanent residency in the country. Bitcoin, tether stablecoin and city-owned LVGA stablecoin are becoming legal tender in Lugano, a broken financial center in southern Switzerland. Mayor Michele Foletti and Polo Ardoino, Technical Director of Tether, announced the news along with City Manager Pietro Poretti. Poretti explained that citizens will be able to pay fees and taxes for the public service with Bitcoin. Ardoino tweeted about things that can be paid with crypto, mentioning more than 200 stores and offers to accept Bitcoin, Tether and LVGA. #lugano #planb announced that #bitcoin #tether and #luga (CHF stablecoin) were legal tender. Here are all the things you can pay for in the city in a few months.
pic.twitter.com/xkNA9Sp4Xw This decision goes far beyond the actions of a number of other Swiss localities that have been accepting crypto for tax payments for some time. 🍫🇨🇭.