In Lugano, a city in Switzerland, shops and restaurants have begun accepting Bitcoin, positioning it as a frontrunner in integrating Bitcoin into everyday purchases.
With over 350 businesses, ranging from well-known chains to upscale retailers, now equipped with Bitcoin payment terminals provided by the city, customers can seamlessly use their Bitcoin wallets for transactions.
Everyday Use and Business Adoption
Although many still view Bitcoin primarily as an investment vehicle, Lugano’s strategy is shifting that mindset.
Both residents and visitors have the option to pay for city services, like childcare, alongside shopping and dining with Bitcoin.
Local business owner Cherubino Fry attributes the appeal of Bitcoin primarily to its low transaction fees—usually under 1%, a stark contrast to credit card fees that can exceed 3.4%.
He shared his perspective on Bitcoin’s adoption:
“Not that many clients yet, just a few occasionally. But using Bitcoin is like nurturing a tree; it will flourish over time, maybe in five or ten years.”
Plan B Initiatives and Real-World Challenges
The Plan B initiative in Lugano, developed with Tether, aims to establish the city as a leading Bitcoin center in Europe.
Director Mir Liponi recounted his experience when he relied on Bitcoin for 11 days due to banking issues, noting that it can cover most daily necessities, except for public transport and utility payments.
He envisions a “circular economy” where residents earn, hold, spend, and pay for services using Bitcoin.
Contrasting Global Examples
Lugano’s approach contrasts with El Salvador, which made Bitcoin legal tender in 2021, yet its usage remains limited.
Some other cities, like Ljubljana and Zurich, have also seen successful adoption, but the methods of implementation differ significantly.
Local Skepticism and Risks
However, not everyone in Lugano is on board with this shift.
Some locals, including university student Lucia, link Bitcoin to speculation and criminal activity.
Professor Sergio Rossi voiced concerns about volatility and risks related to digital storage, recommending that businesses convert their Bitcoin earnings into Swiss francs immediately. He remarked:
“If the platform where my digital wallet is stored fails or goes bankrupt, my cryptocurrency vanishes immediately.”
Mayor Michele Foretti addressed fears surrounding illicit financial activities, stating he believes cash is still preferred for money laundering.
He also pointed out that Lugano has attracted 110 businesses related to Bitcoin, signaling ongoing growth and interest in the digital currency.
