Bitcoin Integration in Lugano, Switzerland

The city of Lugano, Switzerland, has implemented systems to enable bitcoin payments across various sectors, positioning itself as a hub for cryptocurrency adoption.

Widespread Bitcoin Acceptance

Approximately 350 retail establishments, including shops and restaurants, currently accept bitcoin as a form of payment. The city council has facilitated this by distributing cryptocurrency payment terminals to local businesses without charge. Additionally, municipal services, such as pre-school childcare, can be paid for using bitcoin. Transactions are conducted contactlessly from mobile bitcoin wallets.

A customer in a McDonald's in Lugano paid for coffee using bitcoin, with the transaction value being 0.00008629 BTC, equivalent to approximately $8.80.

User and Merchant Perspectives

Nicolas, a visitor from France, indicated that using bitcoin offers a sense of financial autonomy by reducing reliance on traditional financial systems. Some users purchase prepaid bitcoin gift cards in Switzerland, which allow them to convert Swiss francs into bitcoin for digital wallets.

Cherubino Fry, owner of Vintage Nassa, a luxury goods shop, stated that he accepts bitcoin due to lower processing fees compared to traditional payment methods. Bitcoin transaction fees are typically below 1%, while debit card fees can reach 1.7%, and credit card fees up to 3.4%, although these rates vary by country. Mr. Fry reported infrequent bitcoin transactions but expressed optimism for future growth in its usage.

The Plan B Initiative

In 2022, the City of Lugano, in collaboration with cryptocurrency platform Tether, launched "Plan B." This initiative aims to educate the public on cryptocurrency and establish Lugano as a leading European center for bitcoin.

Mir Liponi, Plan B hub director, recounted an 11-day period in which she relied solely on bitcoin for payments due to a bank account access issue. She noted that while certain services like groceries and medical care were accessible via bitcoin, public transportation, fuel purchases, dental services, and energy bill payments are not yet supported. Plan B's long-term vision includes fostering "circular economies" where bitcoin is consistently used for earnings, savings, spending, and service payments.

Global Context of Bitcoin Adoption

El Salvador introduced bitcoin as legal tender alongside the US dollar in 2021, offering citizens a $30 bitcoin equivalent through a government application. Vincent Charles, head of Unchain Data, reported limited public adoption and retailer acceptance during a visit to El Salvador.

Conversely, Ljubljana, Slovenia, was recognized as the world's most crypto-friendly city in an April report, followed by Hong Kong and Zurich.

Public Perception and Challenges

Public opinion on bitcoin in Lugano is varied. A statue of Satoshi Nakamoto, the anonymous creator of bitcoin, was vandalized in August, broken and discarded into Lake Lugano.

Lucia, a Lugano resident, observed that such acts of vandalism are uncommon in the city. She also conveyed skepticism regarding cryptocurrencies, associating them with criminal activities, the dark web, speculation, and the risk of financial loss due to market volatility.

Switzerland also provides specialized ATM machines that allow for the conversion between Swiss francs and bitcoin.