Key conclusions

• Adoption is voluntary. Merchants are in on this because Bitcoin Lightning fees are typically less than 1% compared to the credit card network’s average charge of around 3%.

• Residents can pay city bills, including taxes, parking fines and tuition, in BTC or USDT using standard QR code invoices.

• The city balances the ecosystem by using BTC for payments, USDT for stability and LVGA as a local loyalty token.

• The city has no volatile crypto assets. Payments are instantly converted to Swiss francs (CHF) via Bitcoin Suisse, limiting the city’s exposure to cryptocurrency price volatility.

The cobblestone streets of Lugano, Switzerland are better known for their Mediterranean-style squares and upscale boutiques than for radical economic changes. But take a closer look at the storefronts on Via Nassa, and the familiar “Visa” and “Mastercard” stickers have a fresh neighbor: the dazzling yellow “Plan ₿” sticker.

In this lakeside enclave, Bitcoin is no longer just a digital asset hidden in a chilly wallet. It is a functional currency that can be used to buy everything from your morning espresso to a Gigantic Mac and even pay your city tax bills.

A vision of a decentralized plan ₿

Launched in 2022 as cooperation between Lugano and Tether, Plan ₿ it was not designed as a marketing gimmick. It was conceived as a structural reconstruction of the city’s financial rails.

While countries like El Salvador have pursued top-down mandates for Bitcoin, Lugano’s approach is typically Swiss: voluntary, highly organized and focused on reducing trade frictions.

Ecosystem is resting on three pillars: Bitcoin (BTC) providing sovereign value, USDt Tether (USDT) providing price stability for larger trade, and LVGA token, a local stablecoin that powers a city-wide loyalty program.

Commercial experience and organic growth

For local shop owners, the move to cryptocurrencies is less about ideology and more about financial performance. Time-honored credit card operators in Switzerland can charge merchants fees of up to 3% per transaction. By contrast, Bitcoin payments made through the Lightning Network, a Layer 2 protocol that enables instant transactions with low fees, often cost less than 1%.

One local shop owner describes this change as an organic process. It is “like a growing tree” – he he said BBC. “This tree will be very big in five or 10 years.” While cryptocurrency payments currently only make up a tiny portion of its daily sales, the infrastructure is already in place and waiting for “mass” adoption.

To fill this gap, the city distributed free shrewd POS terminals, provided that by GoCrypto, for over 350 sellers. These devices support the technical lifting of weighty loads. The seller enters the price in Swiss francs (CHF), the customer scans the QR code, and the seller can choose to receive instant settlement in CHF to avoid volatility or preserve the cryptocurrency.

Circular economy

Lugano’s operational base is MyLugano app. This is where clues about everyday city life become real.

• When users pay with cryptocurrency at participating local stores, they receive up to 10% cashback in LVGA tokens.

• These tokens are not just digital points. They are linked to the Swiss franc and accepted for municipal service fees, public parking and even childcare fees.

This creates a self-sustaining loop. A tourist can pay for a luxury watch in USDT, receive LVGA cashback, and then apply this “digital change” to pay for a boat trip on Lake Lugano. By keeping value within these digital rails, the city reduces reliance on some established banking fee structures, keeping more transaction value within the local ecosystem.

Blockchain management through taxes and penalties

Perhaps the most radical “playbook” in Lugano is the way residents interact with the state. Lugano is one of the few places in the world where all city invoices can be issued, from property taxes to parking tickets Paid Parking using Bitcoin or Tether.

The process is extremely mundane, and that’s exactly the point. The invoice comes with a standard Swiss QR code. The resident scans it with their wallet, confirms the exchange rate, which is locked for a compact window to prevent slippage, and the debt is settled. The city authorities describe it as “full automation” of financial flows, reducing the administrative burden on the local treasury.

Institutional infrastructure and milestone for 2025

Plan ₿ momentum reached a fresh high in October 2025 during the fourth annual ₿ Plan Forum. The event attracted a record 4,000 participants from 64 countries, representing a 140% augment in attendance since the project’s inception. This growth is not just about tourism; this reflects a deepening level of institutional interest.

In 2025, Lugano further strengthened its position by issuing a fifth digital bond on SDX, the SIX Digital Exchange, demonstrating that blockchain infrastructure extends beyond retail payments and encompasses advanced municipal debt markets.

The city has also become a magnet for brains, attracting over 110 cryptocurrency startups that have moved to the region, attracted by the regulatory transparency provided under Switzerland’s FINMA framework.

A manager’s skeptical view of risk

However, any professional analysis must take friction into account. Not everyone in Lugano is a believer. Local critics, including students and some academics, remain wary. The main problem is not the technology itself, but the risks associated with care.

In Switzerland, established bank deposits are protected by state guarantees. However, crypto assets stored in digital wallets are not covered by the same protections. “If the platform where my digital wallet is registered crashes or goes bankrupt, my cryptocurrencies will disappear.” warns Sergio Rossi, professor of economics at the University of Freiburg.

Finally, while the technical infrastructure may be fully in place, “psychological adoption” remains a generational challenge. Many residents still view Bitcoin primarily as an investment rather than a medium of exchange.

Plan for the future

The Lugano experiment suggests that large-scale Bitcoin integration may depend less on ideology and more on practical user interfaces. By focusing on three specific workflows, the city has created a replicable model for municipalities around the world:

• Provide sellers with free equipment to remove the “entry fee” for adoption

• Make sure the currency can be used for routine duties such as taxes and not just for discretionary purchases such as luxury goods

• Operate your local loyalty token to keep value flowing in your city.

While the world observes central bank digital currencies (CBDCs) with a mixture of curiosity and concern, Lugano offers a contrasting model: a city experimenting with private, decentralized and stable digital assets, positioned as an alternative to state-issued digital currencies.