Cryptocurrency, News, Taxes

Lugano Teams Up with Tether to Allow Crypto Tax Payments

Lugano, a Swiss city, has reportedly partnered with Tether Operations Limited to boost innovation and enable its residents to pay their taxes in virtual currencies. Reports have it that the two parties will boost technological advancement in Europe by setting up a blockchain center. 

In addition to that, Tether will strengthen Lugano’s infrastructure, as it intends to become a critical blockchain center in the region. 

Driving Innovation Via Blockchain Technology

Speaking of the collaboration, Lugano’s Mayor, Michele Foletti, said that the city is looking into the future, adding that Lugano has already set up a few blockchain solutions like the Lugano digital Franc. Foletti believes that blockchain has potential, and teaming up with Tether couldn’t have come at a better time.

Lugano is on a mission to develop a decentralized and open smart city, becoming one of the cities to capitalize on blockchain to achieve such a feat. Tether will show support for Lugano at the next “Bitcoin World Summit” later in October, with the summit centering on finance and how blockchain can drive innovations. 

In addition, the collaboration will see the blockchain payment company help Lugano strengthen its payment system to enable businesses to accept stablecoins payments. Tether offers the infrastructure required to make this happen alongside other innovations across Europe. 

Making Tax Payments in Digital Currency 

Lugano announced that Tether would incorporate the L2 scalable solution, Lightning Network, into its services. Over the years, the Layer2 solution has turned into a famous, scalable, and solid payment model that doesn’t compromise security and privacy. 

As expressed in the released statement, the link up will enable Lugano citizens to pay their taxes in cryptocurrencies in BTC, USDT, and approved CHF stablecoins. The push for payment taxes in virtual currency is similar to the plans outlined by Colorado to support tax payments in digital currency. 

Last month, U.S. state Colorado announced through its incumbent governor Jared Schutz that residents will have the option of paying taxes in crypto in the summer. He added that taxpayers could pay for their state taxes in virtual assets. Not only that, but the state is also considering enabling Coloradoans to pay for their driver’s licenses in virtual assets.

Interestingly, Colorado is one amongst the few states in the U.S. considering making this bold move. Wyoming and Arizona are the other two states looking at the possibility of implementing cryptocurrency tax payments. Ohio once passed the law on digital asset tax payment but later shut it down in 2019 after some companies failed to enroll in the service. 

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