Changes inside the Bitcoin ecosystem continue to occur concurrently as Bitcoin continues to be affected by global macroeconomic circumstances. This month’s end will see one of Europe’s most significant crypto events taking place in the Swiss city of Lugano. Financially, Lugano ranks third in Switzerland, and the city is making strides toward being crypto-friendly. The newest report involves a McDonald’s restaurant in Lugano, Switzerland, which has begun taking Bitcoin.
Bitcoin Magazine posted a one-minute video on Twitter on October 3 showing how to use a mobile app to place an order at a McDonald’s digital kiosk and then pay for it at a normal register.
What Was Before McDonald’s Bitcoin Payments?
Lugano wants to increase the use of cryptocurrency payments in the city, particularly Bitcoin (BTC) and Tether’s stable token USDT. One of Lightning Network’s most significant new features will be the centerpiece of an event set for the month’s end. Bitcoin’s Layer 2 scalability protocol prioritizes untraceability, speed, and cheap fees for financial transactions.
Lugano Plan B, the crypto event set for the end of October, was established in conjunction with Tether. The chief technology officer at Tether, Paolo Ardoino, will also be a featured speaker. Tether, a stablecoin denominated in USDT, is predominantly traded on the Ethereum and Tron blockchains.
But it was originally born on a Bitcoin sidechain called Omni. Stablecoins like USDT may still be traded for Bitcoin over the Lightning Network. Adoption of cryptocurrencies might be guided by combining the commercial force of USDT with the technical power of the Lightning Network. The government of Lugano wants to help businesses create Lightning Network-compatible crypto payment systems.
Increasing Tether Holdings
Several times in the past, concerns were raised over whether or not stablecoin issuer Tether had adequate USDT reserves. Tether’s CTO, Paolo Ardoino, recently announced that the company has boosted its reserves in Treasury Bills to 58%.
Tether’s ability to keep all USDT reserves at 100% has been questioned in the past. Tether said that it has these reserves in the form of trade receivables and commercial papers.
Commercial papers have a strong reputation as a safe investment instrument in the United States. However, they have mostly been utilized to meet temporary capital requirements. As a consequence, Tether’s use of this device in its reserves has been questioned by many. Tether has also worked to lower its commercial paper hedges over time. Therefore, Tether now has commercial documents valued at far less than $50 million. This is a drop in the bucket compared to USDT’s $68 billion market valuation.
Keep in mind that Tether reserves are very important in the event of large-scale market liquidations. This allows holders of USDT to exchange their tokens for US dollars.