The Swiss municipality of Lugano has started accepting Bitcoin and Tether stablecoin for payment of taxes and all other community service fees in an expansion of local crypto adoption efforts.

In an announcement Monday, Lugano authorities launched automated cryptocurrency payment processing through local digital asset bank Bitcoin Suisse. The system allows businesses and residents to pay any municipal invoice - regardless of amount or category - in Bitcoin.

Lugano is collaborating with Tether on a broader initiative to transform legacy payments infrastructure utilizing benefits of Bitcoin's technology. Bitcoin Suisse forged the technical integration enabling the tax and billing adoption.

Invoices feature Swiss QR codes that users can scan with mobile wallets to select Bitcoin or Tether for seamless settlement. The migration beyond fiat aims to streamline finances and foster blockchain innovation.

Lugano has moved quickly to unlock crypto economies since outlining Plan B partnership plans with Tether in March of this year. That vision supplements wider public-private digital currency projects across Switzerland testing immersive token-powered smart cities.