Lugano transforms Bitcoin into a means of payment and tests practical adoption.

• Lugano expands Bitcoin payments into everyday life.
• Lightning Network reduces fees for local merchants.
• Circular economy connects Bitcoin and municipal services.

The Swiss city of Lugano has become one of the most concrete examples of Bitcoin adoption in real-world payments, putting the optimism of investors and cryptocurrency advocates to the test. What once seemed restricted to speeches and events is now part of the urban routine, with residents and visitors using Bitcoin to pay for everyday expenses.

In the vicinity of the city hall, employees report that the question “Can I pay this with Bitcoin?” has become frequent. In Lugano, the answer is straightforward. Through the Plano ₿ initiative, the city allows the payment of virtually all municipal fees with Bitcoin or USDT, including taxes, parking fines, school fees, and public services. According to the local administration, “invoices issued by the city of Lugano can be paid with BTC, Bitcoin on the Lightning Network, and USDT,” with no limit on the amount.

The adopted infrastructure is a central part of the strategy. Payments are processed via the Lightning Network or through a partnership with Bitcoin Suisse, which is responsible for the immediate conversion to Swiss francs. The approximately 1% fee embedded in the exchange rate represents a significant reduction for merchants who previously bore card costs between 2,5% and 3,4%, directly impacting the operating margin of small businesses.

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Municipal authorities emphasize that the goal is not to build up Bitcoin reserves. Any value received in cryptocurrencies is automatically converted to the local currency before being transferred to public coffers. The focus is on the efficiency of the payment system and the inclusion of citizens who already use Bitcoin or USDT in their daily lives.

Beyond the technical infrastructure, Lugano has invested in a circular economy model. Through the MyLugano app, consumers receive up to 10% cashback in LVGA tokens when paying with cryptocurrencies at participating establishments. These tokens can be used for municipal services, such as public parking and daycare centers, creating a closed loop between private consumption and public services.

The participation of local businesses reinforces the proposal. According to the city hall and the organizers of Plan ₿, more than 350 establishments already accept payments via Lightning Network. The system's presence is visible in cafes, restaurants, and traditional shops. One merchant summarized the economic logic by stating: “Bitcoin fees are less than 1%, while my card machine charges up to 3,4% — I don't need a philosophy degree to choose.”

With events like the Plan ₿ Forum bringing together thousands of participants, Lugano is no longer just a slogan associated with Bitcoin, but is becoming an active cryptocurrency payments laboratory, closely watched by investors and policymakers around the world.