A municipality in Switzerland has introduced a blockchain-based system to reward environmental work, marking a shift in how local governments handle sustainability programs and public incentives. Muri bei Bern, located in the Canton of Bern, has deployed a digital voucher system known as BIDI, built on the Hedera distributed ledger network.
The initiative represents the first live municipal blockchain project of its kind in the country, according to information shared by the municipality and project partners. It connects environmental policy, local commerce, and digital infrastructure through a tokenized reward model tied to real-world activity.
From paper vouchers to on-chain verification
For eight years, Muri bei Bern relied on a paper-based voucher system to reward residents who contributed to conservation work. That model depended on trust and manual tracking. Municipal officials confirmed that the new system replaces that structure with a digital framework that records activity and value on-chain.
Residents now receive blockchain-based vouchers pegged to the Swiss franc for participation in biodiversity efforts. Each voucher carries a value of one Swiss franc and can be redeemed at local businesses and service providers within the municipality.
Eligible activities include meadow restoration, hedge maintenance, wetland rehabilitation, riparian repair, dry-stone wall maintenance, and invasive species removal. The system keeps the existing community redemption model while adding verification and traceability.
The launch follows Switzerland’s 2024 Biodiversitäts-Initiative referendum, which requires municipalities to deliver measurable biodiversity outcomes. The referendum did not provide a unified system for tracking or settlement. BIDI addresses that gap with a digital record of both participation and financial reward.
Built on Hedera with Swiss franc token layer
The project runs on the Hedera distributed ledger network, which project participants selected for its energy efficiency and environmental positioning. Hedera reports a carbon-negative footprint supported by carbon offset purchases that exceed its energy consumption.
Swisscoast developed the payment layer through a private digital Swiss franc stablecoin known as HCHF. The Hashgraph Group participated as ecosystem partner, while Apps with Love supported the digital implementation.
The initiative also received backing from The Hashgraph Association through its Enterprise Accelerator Program, which supports enterprise and government blockchain deployments.
Toni Caradonna, president of Swisscoast AG, described the project as an extension of earlier work in the ecosystem. He said:
"We are proud to offer BIDI – an existing, trusted Swiss instrument—in collaboration with The Hashgraph Association. This is not our first collaboration; previously, we worked on HLiquity, where Hedera offered not only optimal performance but also strong environmental credentials."
He added:
"For us, technologies such as DLT are the cornerstone not only of innovation, but also of conservation. We hope to expand the BIDI voucher to more municipalities, cities, and countries across Europe."
Public-sector use case expands beyond finance
The project reflects a broader shift in how distributed ledger technology is used in Switzerland. Earlier blockchain applications in the country focused on financial services and digital assets. BIDI extends that use into municipal administration and environmental programs.
Stefan Deiss, CEO and co-founder of The Hashgraph Group, pointed to this transition. He said:
"Public-sector instruments such as vouchers, claims, and reporting tokens will become verifiable, and BIDI demonstrates DLT credibility through provenance – not novelty."
The system creates a verifiable link between ecological work and economic reward. Each voucher ties directly to a recorded action, which allows the municipality to track outcomes tied to biodiversity policy.
Apps with Love CEO Stephan Klaus addressed the operational impact. He said:
"As a firm dedicated to digital transformation, we are excited to see how DLT can take a trusted, established community instrument like the biodiversity voucher and make it more efficient, verifiable, and environmentally sound."
He added:
"This project shows how digital products can directly empower citizens and connect ecological action with local economic benefit."
Framework designed for replication
Project partners stated that the system was built with scalability in mind. The technical structure allows other municipalities to adopt the framework without long development cycles. According to the project description, deployment in new locations could take weeks rather than extended infrastructure planning.
This approach aligns with broader policy developments in Switzerland. Authorities have explored stablecoin licensing frameworks that require full reserve backing and redemption rights. These discussions place tokenized payment systems within regulated financial structures.
At the municipal level, BIDI introduces a model where blockchain infrastructure supports both accountability and local economic activity. The vouchers circulate within the community, which reinforces local spending while rewarding environmental contributions.
Early operational shift shows practical challenges
The transition from paper to digital systems introduces operational changes for both residents and local businesses. Participants must adopt digital tools to receive and redeem vouchers. Businesses must integrate acceptance systems tied to the blockchain network.
Municipal authorities have kept the redemption structure familiar to ease this transition. The value remains fixed at one Swiss franc per voucher, and the network of participating merchants mirrors the previous system.
The change replaces manual verification with digital records. This reduces administrative workload but requires technical coordination between partners. The municipality worked with multiple technology providers to deploy the system, which reflects the complexity of public-sector blockchain adoption.
A test case for European municipalities
BIDI places Muri bei Bern among early adopters of blockchain in public administration. The project links environmental policy with financial incentives and verifiable data.
The model could extend beyond Switzerland. Project partners stated that the framework can support adoption in other cities and regions. European governments have increased focus on sustainability accountability, which creates demand for systems that track and verify outcomes.
The BIDI rollout shows how blockchain can function as infrastructure rather than a standalone financial product. The system connects environmental action, local commerce, and digital settlement in a single framework.
Tanya Petrusenko
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