The Swiss city of Lugano, located in the Italian-speaking canton of Ticino, has turned itself into the European capital for cryptocurrency through its bold “Plan ₿” scheme, which lets citizens and businesses transact in Bitcoin and Tether for almost everything. The joint city of Lugano and Tether program is to build blockchain technology as the core of its financial infrastructure, the first major European city to scale to such a level with crypto payments.
Widespread merchant adoption
More than 350 businesses in Lugano now accept Bitcoin, from shops to cafes, restaurants and yes, even luxury retailers. From coffee and burgers to designer bags, residents can buy it all with cryptocurrency — and still have the option to pay in Swiss francs. Entrepreneurs have adopted the system in large part because of cost – with transaction fees far lower for Bitcoin (less than 1 percent) than for credit cards (between 1.7 and 3.4 percent).
Acceptance of cryptocurrency has now been expanded by the city council from retail exchanges to all city payments and services. Residents and business can now use a fully-automated system with the help of Bitcoin Suisse to pay taxes, attend preschool, or settle any other city-related bill in Bitcoin or Tether. Since the payment process is based on Swiss QR-Bill, users just scan the QR codes on the bills and pay them via mobile wallets.
Technical infrastructure
Bitcoin Suisse, the technical infrastructure provider, processes payments and manages integration with current municipal systems. The crypto payment option is alongside more traditional options such as bank transfer and payments at post office counters, so everyone’s needs are accommodated.
The Deputy Chief Financial Officer Paolo Bortolin said Lugano is “pioneers” at the municipality level in providing the unlimited acceptance of Bitcoin and Tether without requiring the manual generation of special crypto-friendly invoices. Plan B encompasses more than just payment infrastructure, including educational initiatives like the Plan ₿ Summer School in collaboration with local universities and an annual Plan B Forum conference held each October.
The initiative positions Lugano as Europe's premier destination for Bitcoin, blockchain, and decentralized technology innovation, with the Plan B Foundation guiding strategic development and long-term vision. City officials, including Mayor Michele Foletti and Economic Promotion Director Pietro Poretti, remain committed to scaling blockchain adoption throughout all facets of daily life in Lugano.