Tether, the issuer of the stablecoin USDT, has announced a partnership with the Swiss city of Lugano to enhance the city’s blockchain infrastructure, according to a report released by Tether on August 22.
As part of the partnership, Tether will host and operate a transaction processing node for the Lugano-based 3Achain partnership, which is a blockchain-based stablecoin. Lugano was the first city in Switzerland and one of the early adopters worldwide to launch its stablecoin, LVGA.
The 3Achain partnership involves public and private partners as well as academia, integrating security, horizontal scalability, and decentralization into Lugano’s blockchain system.
The new alliance between Tether and 3Achain is expected to boost and reinforce Lugano’s blockchain infrastructure, which forms the backbone for local businesses and supports the city’s stablecoin, LVGA.
Plan Initiative ₿
As participants in the ₿ Plan initiative, Lugano and Tether are working to accelerate the adoption and use of blockchain technology, which forms the foundation for Lugano’s financial infrastructure transformation.
Tether emphasizes in its statement that the city uses Bitcoin and Tether for transactions with over 350 local vendors and intends to include such payments for municipal services like taxes and parking fees. The city also recognizes its digital currency, LVGA, as an official means of exchange.
The decision regarding the hosting and operation of the transaction processing node for the 3Achain partnership is governed by a memorandum of understanding signed between Lugano and Tether in March 2022.
Paolo Ardoino, the Chief Executive Officer of Tether, stated, “The Tether partnership with 3Achain will provide the necessary expansion and stability as Lugano continues to evolve as the Bitcoin and blockchain capital of the region.”
The ₿ Plan initiative in Lugano, a joint effort with Tether, aims to harness the full potential of Bitcoin technology to reshape the city’s financial infrastructure. This plan envisions the expansion of blockchain and Bitcoin throughout the city in a way that positively impacts the daily lives of Lugano residents.
Blockchain technology will be integrated to support financial exchange infrastructure throughout the city, from simple transactions with local merchants to larger operations such as tax payments.