Cryptocurrencies have already been adopted for tax payments in many other parts of Switzerland. Like El Salvador, Lugano is also going to incorporate cryptocurrencies into the daily transactions of its trading activities. However, in El Salvador, bitcoin has been made a legal tender.
Polygon has taken a stake in it as an infrastructure partner. This will provide a track for the stablecoin. Lugano aims to become the Bitcoin Capital of Europe. According to a report published in Economic Times, Polygon co-founder Sandeep Nailwal said, the stability of Stablecoin technology and Polygon’s low-cost infrastructure together will give Lugano a fast and stable means of transactions.
At an event in the city, the mayor of Lugano called it ‘de facto’ legalisation, which means it would be physically valid but not legal. He said that in Lugano and Switzerland only the Swiss franc would be valid as the actual legal tender. A special center will be set up in the city for companies and startups etc. For this, $ 1.9 billion will be raised as a fund to help finance blockchain-based startups. In addition, 3 million Swiss francs will be invested in local businesses to increase the speed of crypto adoption.
Lugano is the 9th largest city in Switzerland with a total population of more than 60 thousand. It is the Italian-speaking southern part of the country.