El Salvador and Lugano Form Bitcoin Adoption Agreement

New York City: El Salvador and the city of Lugano in Switzerland have just signed a Memorandum of Agreement on Economic Cooperation, which will hopefully result in an increase in the number of people using Bitcoin. In order to encourage people all throughout Europe to start using Bitcoin and other cryptocurrencies, El Salvador has decided to open a “Bitcoin office” in Lugano.

The stablecoin issuer Tether has issued a statement indicating that the alliance between the city in Switzerland and the country in Latin America will promote initiatives to incorporate Bitcoin and other cryptocurrencies across their respective regions and will foster the exchange of talents between El Salvador and Lugano.

Tether, the company that developed the most widely used stablecoin in the world, known as USDT, is aiming to make Lugano, Switzerland, a hub for the usage of cryptocurrencies like Bitcoin and stablecoins via a scheme that is being referred to as “Plan B.”

In addition, the Mayor of Lugano, Michele Foletti, stated that Lugano was a land of innovation and possibility, and that the historic announcement regarding their relationship with the lovely country of El Salvador was wonderful news for those who believe in the power of cryptocurrencies and financial independence. As we continue to work toward achieving a more equitable distribution of wealth around the globe, Michele believes that the people of Lugano and El Salvador will benefit from our efforts to collaborate.

El Salvador made history by being the first country in the world to publicly acknowledge Bitcoin as a valid form of currency in 2017. It is mandatory by law for a business to accept an asset as payment if it has the necessary technical capabilities to do so.

The leader of the country in Central America, Nayib Bukele, has also made an investment in bitcoin worth tens of millions of dollars, and advocates of the digital currency have been to the nation for conferences and to promote use of the technology.

The United States government has condemned the decision, despite the fact that senators have stated that the action poses risks to the American financial system and has the potential to undermine the sanctions policy of the United States, thereby providing cover for hostile actors such as China and organized criminal organizations.

In April of this year, Tether and El Salvador collaborated to establish a relief fund to support families in El Salvador who have been impacted by gang violence. Tether has provided funding for a variety of initiatives around the country of El Salvador that aim to broaden people’s access to cryptocurrency trading, including the forthcoming Adopting Bitcoin conference. Since Bitcoin was declared to be a valid form of payment, the number of visitors coming to El Salvador has surged by thirty percent, drawing interest from a wider variety of nations than ever before. This may motivate other states to investigate the possibility of crypto regulatory frameworks.