Switzerland’s southern city of Lugano and El Salvador have signed an economic cooperation agreement based on crypto and blockchain.
According to an Oct. 28 announcement from Lugano, the 2 pro-crypto jurisdictions signed a memorandum of understanding on economic cooperation on the city’s Plan B occasion. Lugano Mayor Michele Foletti cited El Salvador adopting Bitcoin (BTC) as authorized tender as half of the city’s curiosity within the agreement, which can permit the pro-crypto nation to determine a bodily authorities presence in an effort to “foster cooperation with educational and research institutions.”
“The use of Bitcoin and Blockchain technology creates new opportunities for growth and investment that benefit our communities; it is a new alternative financial and exchange tool that fosters trade and the provision of services in a globalized world,” mentioned Joaquín Alexander Maza Martelli, El Salvador’s ambassador to the United Nations Office in Geneva. “With this agreement, El Salvador is now much closer to Europe.”
Speaking to Cointelegraph on the Plan B occasion, former Blockstream chief technique officer Samson Mow mentioned the agreement was the “next step” in nation-states and cities adopting BTC:
“[El Salvador and Lugano are] going to start working together and collaborating on joint initiatives. I think that’s the way we push each other forward — basically create alliances between places that have adopted Bitcoin.”
— Stacy Herbert (@stacyherbert) October 28, 2022
Stablecoin issuer Tether, which introduced in March it might create a fund of as much as 100 million Swiss francs to assist finance blockchain-based startups in Lugano, supported the agreement in an Oct. 28 weblog submit. Chief expertise officer Paolo Ardoino mentioned Tether would “stand ready to help however we can.”
Related: McDonald’s begins to simply accept Bitcoin and Tether in Swiss city
As half of the Plan B initiative, Lugano plans to permit residents to make use of BTC, Tether (USDT) and LVGA tokens as “de facto” authorized tender in lots of retailers and companies within the space, in addition to for paying taxes, parking tickets, public providers and tuition charges. In El Salvador, BTC has been accepted as authorized tender for the reason that adoption of the nation’s Bitcoin Law in September 2021.