Bitcoin Adoption in Lugano, Switzerland
In Lugano, located by a picturesque lake and surrounded by mountains, it’s common for customers to inquire about paying with bitcoin at local establishments, including McDonald’s. The city’s council has distributed cryptocurrency payment terminals to various businesses free of charge, allowing transactions directly from users’ bitcoin wallets on their smartphones. For instance, a customer may find their coffee bill amounts to about 0.00008629 BTC, equivalent to roughly $8.80.
While many regard bitcoin primarily as a speculative investment rather than a payment method, Lugano presents a different scenario. Over 350 shops and restaurants now accept it as a valid currency, in addition to traditional Swiss francs. The municipality has even begun accepting bitcoin for various services, including pre-school childcare.
A customer at McDonald’s, named Nicolas from France, expresses his enthusiasm for using bitcoin, stating it offers a sense of freedom by removing reliance on traditional financial systems. He also mentions prepaid bitcoin gift cards that can be bought in Swiss francs and converted for use in digital wallets.
Walking along the luxury shopping streets, one shop owner, Cherubino Fry, shares his rationale for accepting bitcoin: the processing fees for bitcoin transactions are lower than those for credit cards. He notes that while transactions in bitcoin are still infrequent, he believes its usage will grow significantly over the next decade.
The Lugano City Council introduced the “Plan B” initiative in 2022, in partnership with cryptocurrency platform Tether, intending to educate residents about bitcoin and transform Lugano into a European bitcoin hub. Mir Liponi, the initiative’s director, shares her experience of solely relying on bitcoin for 11 days due to banking issues. She believes that with more businesses adopting bitcoin, it could become feasible for daily living in Lugano, despite current limitations around public services and bill payments.
However, the path to bitcoin normalization isn’t without its challenges. Other cities, like El Salvador, have encountered difficulties with similar initiatives, where citizens largely exchanged received bitcoin for dollars instead of using it. Meanwhile, the economic implications and volatility of bitcoin continue to raise caution among local experts. Professor Sergio Rossi emphasizes the importance of immediate conversion to traditional currencies to avoid potential losses and reputational damage related to illegal transactions.
Despite concerns regarding cryptocurrency’s association with illicit activities, the Mayor of Lugano, Michele Foletti, maintains that the city is experiencing positive developments from bitcoin’s presence, as numerous crypto-focused businesses have established themselves in Lugano.
