In brief
In Lugano, a notable Swiss city, bitcoin is now widely accepted for payments in shops and restaurants. The local government supports this initiative by providing technology for cryptocurrency transactions. With over 350 businesses now accepting bitcoin and municipal services taking crypto payments, Lugano is positioning itself as a hub for cryptocurrency. Residents express varying opinions on this trend, highlighting both the freedom it offers and concerns around volatility.
In a McDonald's by a lake surrounded by mountains in the center of the Swiss city of Lugano, a customer orders coffee.
Can I pay with bitcoin? he asks, and the person behind the counter holds out what looks like a credit card payment terminal.
It is, in fact, a machine for paying with cryptocurrency, distributed free to local businesses by the city council. The buyer pays contactless from their bitcoin wallet on their mobile phone, settling a bill of 0.00008629 bitcoins, roughly $8.80 (£6.60).
Many who purchase bitcoin view it primarily as an investment rather than using it for transactions, but Lugano is changing that perception.
Currently, around 350 local shops and restaurants accept bitcoin, and the local authority has taken crypto payments for municipal services, including preschool childcare.
Customers express excitement about using bitcoin, feeling liberated from traditional financial systems. Nicolas, a customer from France, believes this new payment method symbolizes freedom from middlemen and additional costs.
While some businesses, like Vintage Nassa, facilitate bitcoin transactions due to lower fees than credit cards, many note the current volume of such sales is sporadic. Yet, optimism for growth persists among shop owners.
Additionally, the Plan B initiative aims to position Lugano as Europe's bitcoin hub, educating the public about cryptocurrency. Some residents report that one can manage daily living expenses primarily using bitcoin, though limitations exist for public transport and utility bills.
Despite the potential, risks accompany cryptocurrency adoption, with economists warning about volatility and the importance of instant conversion to fiat currencies to mitigate this. Concerns about crime associated with crypto transactions have been raised, but local officials argue that traditional fiat currency remains a more common method for illicit activities.
Ultimately, the success of bitcoin in Lugano is still unfolding as the local community embraces this digital currency amid varying levels of skepticism and enthusiasm.
