Lugano embraces bitcoin: Stores and city services go digital

In Lugano, the Italian-speaking city of Switzerland, most stores and restaurants have started accepting bitcoin as payment. The city administration has installed payment terminals to promote cryptocurrency usage. Even fast-food chains allow customers to pay contactlessly with digital wallets on their phones. For example, a cup of coffee costs 0.00008629 bitcoin, roughly $8.80.

Residents can still pay in Swiss francs, but around 350 businesses now offer bitcoin as an option. The municipality has also started accepting cryptocurrency for certain city services, including preschool fees.

Some businesses prefer bitcoin due to lower transaction fees. Cherubino Fry, owner of luxury store Vintage Nassa, notes bitcoin fees are usually below 1%, compared to credit card commissions of 1.7% to 3.4%.

The city's Plan B initiative, launched with Tether in 2022, has encouraged bitcoin use. Director Mir Liponi even tried living solely on bitcoin for 11 days and found it largely feasible, though public transport, fuel, and energy bills cannot yet be paid with it.

While other experiments, such as in El Salvador, had mixed results, Lugano is emerging as a crypto-friendly city alongside Ljubljana, Hong Kong, and Zurich. However, bitcoin remains controversial locally. A statue representing bitcoin's alleged creator Satoshi Nakamoto was vandalized in August, and some residents associate cryptocurrency with crime and speculation. Experts also warn about volatility risks and the need to quickly convert bitcoin into official currency.

Mayor Michele Foletti rejects claims that bitcoin attracts criminal activity, saying cash remains more appealing to organized crime. He highlights that bitcoin has boosted Lugano's economy, with 110 crypto companies now operating in the city.