Tether has joined forces with the City of Lugano to launch Plan ₿ Phase II, a five-year strategy running through 2030 that extends their blockchain partnership. The collaboration includes a commitment of up to CHF 5 million, focused on expertise, infrastructure, research, and training.
This initiative builds on the 2022 program, shifting from initial experiments with digital payments to a framework for long-term digital sovereignty and resilience.
Since its debut four years ago, Plan ₿ has delivered tangible results.
More than 400 local businesses now accept Bitcoin, Tether’s USD₮ stablecoin, and the city’s LVGA token for everyday transactions.
The city has pioneered digital bond issuances and incorporated blockchain into select municipal payments, embedding the technology into public finance without exposing taxpayers to undue risk.
A physical innovation hub called PoW.space was established, drawing over 100 fintech and blockchain firms to the region and bridging traditional finance with decentralized systems.
The annual Plan ₿ Forum has grown from a local event into a major international conference, attracting more than 4,000 participants from over 60 countries.
Educational partnerships with universities have also expanded, offering training in decentralized finance, distributed systems, and blockchain development to cultivate local talent.
With Phase II, Lugano is moving beyond pilots to systemic change.
The strategy rests on core pillars: developing institutional infrastructure for digital assets and automation; establishing the city as a center for digital trade and commodity processing; advancing privacy-focused digital identity solutions; nurturing local artificial intelligence ecosystems and autonomous agents; and deploying modular, resilient urban digital networks.
These efforts aim to reduce reliance on centralized global tech providers, mitigating risks around data dependency and cybersecurity while strengthening governance and operational independence.
The renewed memorandum of understanding ensures the City of Lugano retains full authority over all projects, with each initiative governed by separate agreements.
Tether’s contribution emphasizes technical support and capacity building rather than direct financial control.
“Over the past four years, Lugano has shown that public institutions can engage with emerging technologies pragmatically while maintaining oversight,” said Paolo Ardoino, CEO of Tether.
“Phase II focuses on infrastructure, resilience, and local capacity building. The ambition is to support Lugano in becoming a globally relevant digital infrastructure hub, while preserving public governance and autonomy.”
Mayor Michele Foletti added:
“Four years ago, Lugano chose to lead rather than wait. We demonstrated that innovation and institutional responsibility can coexist. With Plan ₿ Phase II, we are investing in open and resilient civic digital infrastructure, because by 2030, a city’s freedom will increasingly be measured by its ability to govern its data and essential services without critical dependencies, with public governance safeguarding the collective interest.”
By transitioning from early adoption to comprehensive digital infrastructure, Lugano is positioning itself as a model for cities worldwide. In an environment dominated by concentrated cloud, payment, and AI services, this partnership underscores a proactive approach to technological autonomy.
