TechFlow news, December 26 — According to Cointelegraph, the city of Lugano's "Plan ₿" initiative has made significant progress, allowing residents to pay various municipal bills—including taxes, parking fines, and tuition fees—using Bitcoin (BTC) or Tether (USDT). Launched in 2022 in partnership with Tether, the project aims to build a decentralized financial infrastructure.
Currently, more than 350 merchants in Lugano accept cryptocurrency payments, with transaction fees via the Bitcoin Lightning Network typically under 1%, significantly lower than the approximately 3% charged by traditional credit cards. To encourage adoption, the city government provides free smart POS terminal devices to merchants.
Lugano has also established a circular economic system through the MyLugano app, offering users up to 10% cashback in LVGA tokens when spending with cryptocurrencies at participating stores. These tokens can be used to pay for municipal services, public parking, and childcare fees.
The initiative has attracted over 110 crypto-related startups to the region, and the fourth Plan ₿ Forum held in October 2025 drew 4,000 participants from 64 countries, representing a 140% increase since the project's launch.
