Tether reinvests 5 million Swiss Francs to advance Plan ₿ Phase 2, with Lugano, Switzerland, accelerating the development of the Bitcoin city

On March 4th, stablecoin issuer Tether renewed its “Plan ₿” partnership agreement with the Lugano city government, officially launching the second phase of the plan from 2026 to 2030. According to the updated memorandum, Tether will provide up to 5 million Swiss francs over the next five years for digital infrastructure development, blockchain application research, technical training, and related ecosystem growth. This plan is seen as a significant example of Europe’s efforts to promote Bitcoin cities and digital asset infrastructure.

“Plan ₿” was initially launched in March 2022 with the goal of promoting the practical use of Bitcoin and stablecoins within the city economy. Starting from early payment trials, the project has gradually expanded into a city-level digital financial system. Currently, more than 400 merchants in Lugano support payments with Bitcoin, USD₮, and LVGA, and some municipal services are beginning pilot programs for digital asset settlements.

In terms of ecosystem development, both parties have jointly established the PoW.space blockchain innovation center, providing collaboration space for local developers, startups, and P2P projects. Data shows that the center has attracted over 100 fintech and blockchain companies. Meanwhile, the Plan ₿ forum continues to expand its influence from the first phase, attracting over 4,000 industry participants from more than 60 countries, covering topics such as digital asset infrastructure, financial sovereignty, and governance models.

The second phase will focus on five core pillars, including institutional-grade digital asset management tools, city-level automation systems, digital trade and commodity exchange centers, and privacy-focused digital identity systems. The project will also explore local AI ecosystems and autonomous agent technologies, as well as promote modular urban infrastructure to enhance the city’s resilience.

According to the agreement, funding will be gradually allocated from 2026 to 2030, but city governance rights will remain fully under the control of the Lugano city government. All specific projects will be advanced through separate implementation agreements and operated within regulatory compliance and public oversight frameworks.

Tether CEO Paolo Ardoino stated that the second phase will focus on city-level digital infrastructure and long-term capacity building. Lugano Mayor Michele Foletti noted that the project aims to create a more open and resilient municipal digital system to keep the city competitive in the digital economy era.