Thursday, October 5, 2023

Lugano Embraces Crypto Tax Payments


The Swiss city of Lugano has formed collaboration with Tether Operations Limited to develop its technology capabilities while also allowing its inhabitants to pay their taxes using cryptocurrencies.

Furthermore, the alliance would aid in the establishment of a blockchain adoption center in Europe. Simultaneously, it aids in the scaling of Lugano’s blockchain infrastructure. At the same time, it appears to be on its way to become a vital centre for innovative technologies in the European Union.

Partnership Goals

The collaboration intends to show how blockchain technology can be used in the real world. This will be done by applying it to local communities in Lugano. Most blockchain projects have so far concentrated on basic work that pay little attention to local communities or provide practical applications.

The Lugano Living Lab, for example, is one of the city’s many unique initiatives. It carries out projects in the fields of innovation and digital technology by experimenting and prototyping on a large scale.

Furthermore, Tether can go beyond most current blockchain implementations thanks to Lugano’s ecosystem. Simultaneously, collaborate with Lugano on the first full-scale urban practical use case. Localized services with specialized use cases will be shown in Lugano, with the goal of lowering infrastructure costs and increasing access to global markets.

Future Adaptation

The city hopes to increase its efforts in the near future to enable individuals and businesses to pay all of their annual taxes, as well as all goods and services, in bitcoin.

Only Bitcoin, Tether, and a few CHF-based stablecoins received formal clearance to accept such payments. Various service providers will convert funds into local FIAT currency. Lugano is now one of the first cities in the world to deploy a complete cryptocurrency payment system.

Tether and other service providers will begin collaborating with the city of Lugano. This aims to make it easier for local companies to integrate their existing payment systems with the allowed stablecoins. It guarantees that the necessary technology infrastructure is in place.

The Lightning Network will be one of the options that the city will integrate into its services with the help of Tether. Lightning Network has grown to become a well-known, highly scalable, and reliable payment system. It addresses the blockchain’s scaling issues without sacrificing security, trustworthiness, or privacy.

Tether’s Support in Lugano

Tether will support the city at its upcoming “Bitcoin World Summit” in October this year as part of the relationship. It has a theme that touches on deep discussions about communication freedom and finance. These are the aspects that blockchain innovations are aiming to revolutionize.

Tether will also assist the City of Lugano in transforming its business flexibility. It intends of taking stablecoins as payment for their services. Tether, as the world’s largest stablecoin issuer, will provide the technological foundation needed to make these and other targeted improvements a reality.

The tax pact between Lugano and Tether is akin to a similar push by the US state of Colorado. It expects to begin accepting crypto payments for taxes this summer.

Louis Honsa
Louis Honsa
Louis Honsa is an independent writer for Cryptoconstellation. He is a data analyst and trades NFT’s too. Louis enjoys cycling and working out in his free time.

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