Switzerland’s Lugano Is Adopting Cryptocurrencies For Tax Payments

Switzerland's Lugano Is Adopting Cryptocurrencies For Tax Payments

A new partnership between the Swiss city of Lugano and Tether Limited will see the city adopt crypto tax payments soon. According to the announcement by the involved parties, the city will establish a center of excellence dedicated to the development of blockchain infrastructure. The center would have the objective of driving the adoption of digital assets within the city while acting as a blockchain hub for Europe.

The mayor of Lugano, Michele Foletti expressed that the city believes in the technology and that the new partnership is an investment in the future as far as the city is concerned. He stated that this is not the first time Lugano has moved towards the appreciation of distributed ledger technology (blockchain), since the city was at the forefront of 3Achain. Other blockchain applications that have been adopted by Lugano include the Lugano digital franc and MyLugano app which facilitates payments through its token, LVGA.

Driving Lugano Blockchain Innovation

The partnership with Lugano entails that Tether Limited supports the plans of Lugano to start accepting the stable coin in its services within the city. The stable coin company will also be at the forefront of blockchain innovations in the city. The upcoming global meetup, “World Blockchain Summit” slated for October 22 will also see Tether showcase its support for the city as participants discuss issues that affect Bitcoin adoption and the blockchain space. The summit, which is finance and innovation themed, has the stable coin issuer as a Gold Sponsor of the event.

Since innovation is a trait of the blockchain space, the Tether-Lugano partnership is also aimed at transforming the city’s payment infrastructure through the flexibility and transparency of blockchain technology. This innovation will also be extended to the city council’s businesses with emphasis on tax payments which will be possible with cryptocurrencies.

Lightning Network Integration

Tether will also be at the forefront of the integration of the Lightning Network with the city’s payment infrastructure. The scalability of the second layer sidechain will ensure that payments made have low latency without compromising security and trustlessness.

The highlights of the partnership show that tax payments in crypto will support Bitcoin, Tether, and Swiss franc-denominated stable coins. The new deal is a reflection of the increasing interest that some cities and states have shown towards blockchain technology with an emphasis on tax payments in cryptocurrencies. Last month, the US state of Colorado announced that crypto tax payments will be backed by the state government.

Jinka Kamma
Jinka is passionate about blockchain technology. Disclosure: He owns less than 1 BTC and less than 5 ETH. Contact: Jinka.Kamma [@] coinjot.com