In a McDonald's by a lake surrounded by mountains, in the centre of the Swiss city of Lugano, a customer orders coffee.
Can I pay with bitcoin? he asks, and the person behind the counter holds out what looks like a credit card payment terminal. It is in fact a machine for paying by cryptocurrency. The equipment has been distributed free to local retail businesses by the city council.
The buyer pays by contactless, from the bitcoin wallet on his mobile phone. The bill comes to 0.00008629, which is roughly $8.80 (£6.60).
Few people who have bought bitcoin would probably think about using it to purchase actual things in shops. It is instead generally seen as an investment, a bet on its value going up. But in Lugano, in the Italian-speaking part of Switzerland, it's a different story.
While you can, of course, still pay for everything in Swiss francs, some 350 shops and restaurants now also accept bitcoin. The local authority has even started taking payments in cryptocurrency for municipal services. You can, for example, pay for preschool childcare in bitcoin.
Nicolas, a customer from France, believes that using bitcoin gives you a sense of freedom from traditional financial systems. Many local businesses also find it advantageous due to lower transaction fees compared to credit card companies.
Despite this optimistic outlook, there are varying opinions among locals regarding bitcoin. While some see it as a progressive step towards a digital economy, others remain skeptical, associating it with crime and speculation.
Economics professor Sergio Rossi warns shopkeepers about bitcoin's volatility and emphasizes the importance of converting bitcoin to stable fiat currencies. Concerns over its use in illegal transactions also linger in discussions.
The city's Mayor Michele Foletti remains positive, noting it has attracted 110 crypto-sector companies, showcasing Lugano's ambition to be the European hub for bitcoin.
As Lugano cultivates its reputation as a pioneer in cryptocurrency, the outcomes of this experiment may influence other cities considering similar initiatives.
