I believe that accepting crypto and especially BITCOIN to pay taxes could be a favorable business framework conditions for crypto companies / investor that are looking for a place to establish their operations.
Additionally, let's imagine a company that decided to go full on crypto (in their treasury) , how are they going to fulfill their taxes obligations ?
Switzerland is also crypto friendly nation so I guess it can depend on the state of the country.
The cardinal benefit of this policy is that it will increase Bitcoin awareness and adoption. More people will know Bitcoin and some might decide to adopt it as a legal tender or investment platform. The city will also attract more Bitcoin businesses that can boost the economy of the city. The reason why Silicon Valley became famous was because they had the same kind of business clustered in one geographical location. The city of Lugano could make crypto-friendly laws because Switzerland supports crypto. I don't think any state or city can make such a law in my country because it will be against the national cryptocurrency regulatory laws.