Switzerland is considered a pivotal country in the blockchain ecosystem. The city of Lugano is a perfect example of the involvement of the Swiss public institution in the evolution of the adoption of bitcoin and morals. What future is promised to Web3 in this small country among the industry leaders? To what extent will the Confederation be a key player in the adoption of bitcoin, cryptocurrencies and blockchain technology? Paolo Bortolin, CFO of the city of Lugano and responsible for the famous Plan B, as well as Pietro Poretti, Director of Economic Development at the city of Lugano, will answer our questions in a premium interview today. First of all thank you for this interview gentlemen. I would like to start with a simple question:
In your opinion, what role should the public domain take in the adoption of Bitcoin?
The public sector is made up of several actors, answers Paolo Bortolin. The regulations, the development framework (which is already underway in Switzerland for taxes for example), the public sector is itself a key structural player for citizens to adopt blockchain and bitcoin. Pushing adoption thanks to the trust of the public sector, and its impact on the education of the population, adds Pietro. The Swiss public sector absolutely wants to catch up with the arrival of Web2 and become a hub for the innovation that blockchain brings.
What would be the benefit for the public institution of advocating for the adoption of bitcoin?
Pietro Poretti begins: “Everything digital has enormous potential, but also a risk: that of the digital division. Not everyone has the same learning abilities when it comes to new technologies. This can quickly become a problem. The public domain can then use its lever of action to educate and enable better equality of opportunity. By adopting this type of technology, and educating the population to use it, we can test ways of educating the general public on new subjects and think about improving other problems thanks to these ways of doing things.
Paolo adds that in his opinion, a city functions to a certain extent like a business. With blockchain, processes are improved, just like in business! Although it is something very traditional, why not use this technology to improve the administrative management of the city? The progress is more modern and more efficient for institutions, and this allows them to concentrate on other issues and improve the standard of living.
Paolo, we know you are at the head of Plan B like Bitcoin in Lugano, do you think that this model can become the Swiss reality of tomorrow?
The two guests agreed on the opinion expressed by the CFO: “Certainly for certain parts. There are five fundamental pillars of Plan B, and I think that the federal level could take inspiration from the educational side and encourage the population to position itself as a pioneer of adoption on a national scale. The same model as Lugano, with the cashback of a stablecoin like LUGA, would amount to creating a Central Bank Digital Currency (CNBC), but it could take a different form. The future will tell us, but the tax system for example, after a few cantons, could be exported to the level of the Confederation. We must remain pragmatic, for the moment we are lucky with Plan B it is a success, but it is simpler on the scale of a city. You have to have good actors, and sometimes a little chance, like our collaboration with our biggest partner. It’s a whole culture to put in place, and at the federal level, it will probably be slower.”
Switzerland is very adept at centralized finance. Do you think there will be a conflict between traditional finance and Web3?
Naturally, Pietro tells us that pragmatism will be there. Banks, if they have a financial interest, will take the initiative to create bridges between traditional finance and Web3 using players like Wecan Group. From an economic development point of view, there is no reason to think that this will not be the case. Technology in itself helps reduce costs and brings speed, so what could go wrong for banks? I think that the players will go hand in hand towards innovation, in order to pursue their primary goal, namely profit. His colleague adds a word, saying that this is already the case in the banking sector, and that great projects are already in preparation or underway.
Can we imagine an official identity directly on the blockchain, issued by the Confederation?
According to Paolo, there already exists a law that allows the Swiss Confederation to provide identity on the blockchain. It stipulates that the Confederation is the only entity with the right to have this type of mandate on the blockchain. Technology could indeed bring value to government, but I don’t think that’s their primary focus right now.
What is Switzerland missing to be the “must-to-go” country for Web3 entrepreneurs?
The director of Plan B speaks first:
I think the country is already very well equipped, and that it is attractive. Switzerland’s position is good in terms of talent, innovation and attractiveness for entrepreneurs, research institutes, capital… Everything can be improved but I think that Switzerland is already one of the most important players. interesting for blockchain companies and their activities. The political stability and entrepreneurial mentality of the Confederation no longer needs to be proven, and I believe that we are and will always be a pioneer in the coming years.
Paolo Bortolin
His friend responds with a touch of humor:
The Swiss still need to accept failure a little more!
Pietro Poretti
According to our guests and their undeniable experience in the Swiss ecosystem and in the world of Web3, Switzerland fully deserves its reputation. It is an advanced leader in the adoption of bitcoin, notably through the acceptance of crypto taxes, or through its adoption hubs like Lugano. A leader who, according to Paolo and Pietro, will keep his place in the future, being able to count on a public institution committed and open to innovation. Discover in more detail our survey on Switzerland, home to cryptos.
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