**How Lugano, Switzerland Became a Bitcoin-Friendly Hub With 350+ Merchants**

The Alpine city of Lugano in Switzerland has quietly transformed into one of Europe's most progressive cryptocurrency hubs, moving beyond theoretical blockchain adoption to real-world utility. What started as the Plan ₿ initiative in 2022 now enables residents to settle municipal obligations—from property taxes to parking citations and school tuition—directly with Bitcoin (BTC) or Tether (USDT).

**From Theory to Practice: The Payment Infrastructure**

The practical implementation reveals the project's sophistication. More than 350 local merchants across Lugano now process cryptocurrency transactions, with the Bitcoin Lightning Network handling settlements at fees consistently below 1%. This cost advantage becomes immediately apparent when compared to the traditional payment ecosystem, where credit card transactions typically incur 3% processing fees. The city government recognized this efficiency and actively supports merchant participation by distributing smart POS terminals at no cost—a move that has dramatically reduced barriers to adoption.

**The Reward Loop: MyLugano and Circular Economics**

Equally compelling is the incentive structure built into the MyLugano app. Customers who spend cryptocurrency at participating merchants receive up to 10% cashback denominated in LVGA tokens. Rather than treating these tokens as mere loyalty points, the city designed them for functional utility: token holders can redeem them for municipal services, public parking spaces, and childcare arrangements. This creates a self-reinforcing cycle where cryptocurrency spending becomes increasingly practical for everyday life.

**The Ecosystem Effect**

The project's impact extends beyond transaction volumes. Over 110 crypto-focused startups have established operations in Lugano, drawn by the city's clear regulatory stance and growing infrastructure. The October 2025 Plan ₿ Forum demonstrated this momentum, convening 4,000 participants representing 64 countries—a 140% surge in attendance since the program's inception. This convergence of policy support, merchant adoption, and entrepreneurial activity suggests that Lugano, Switzerland is not merely experimenting with Bitcoin adoption but building durable economic infrastructure around it.