In Toulouse, France, locals can now pay for their metro, tram, cable car, and bus fare using Bitcoin and other cryptocurrencies.
As of March 17, Toulouse has become the first city in Europe to allow the legal use of crypto for public transportation payments.
This initiative is part of France’s broader effort to implement numerous crypto-friendly services. Reports suggest that Cannes is also developing a payment option for residents to use cryptocurrency.
Tisséo, Toulouse’s public transport operator, spearheaded this initiative. Users can purchase tickets through an Android app, using Bitcoin or one of 70 altcoins, with the crypto being swiftly converted into euros. Binance Pay is one of the platforms supported for transactions.
Sacha Briand, the deputy mayor of Toulouse, indicated that this venture is experimental, aimed at assessing how widely cryptocurrencies can be adopted over time. The administration of Toulouse is keen on exploring the long-term potential of integrating cryptocurrency into everyday use.
It’s noteworthy that the crypto payment structure was developed by Lyzi, a Parisian fintech company. They are actively enabling various businesses, including pharmacies, coworking spaces, and restaurants, to adopt crypto payment systems.
Lyzi also aids in facilitating crypto transactions for Printemps fashion stores throughout France.
Supporters of Tisséo’s approach contend that partnering with Binance is key for ensuring fast transaction processing.
A more substantial challenge lies in the requirement to report crypto transactions using tax form 3916-bis, as they are subjected to a 30% capital gains tax. It remains to be seen how manageable this will be. Regulatory adjustments may be required to simplify crypto payment processes. As of now, statistics regarding the adoption of this new payment method are not available.
Crypto in France
France is among the nations that established comprehensive crypto regulations in 2020, which legally recognized cryptocurrency storage and transaction as compliant with AML guidelines.
The official announcement about the crypto implementation in Toulouse indicates that cryptocurrency is gaining traction among French citizens. A 2024 report by Gemini highlights that approximately 18% of French individuals possess crypto. Tisséo’s incorporation of crypto payments for public transport is a strategic move anticipating further growth in crypto ownership.
While this new initiative could spark greater interest in cryptocurrency ownership, it may also help to establish a solid infrastructure for everyday purchases once the number of crypto holders reaches a significant level.
Bitcoin Cities
Though Toulouse is the first European city to allow residents to utilize crypto for public transport payments, several other countries feature various services that accept cryptocurrency:
- Argentina: Since 2019, Argentine citizens have been able to top up their SUBE cards, used across around 60 cities for public transport, with cryptocurrencies.
- United Arab Emirates: Dubai is often referred to as one of the first “Bitcoin cities,” where although Bitcoin is not recognized as legal tender, it can be used in hotels, malls, and restaurants, as well as for vehicle rentals and flight bookings. Real estate transactions in Dubai can also be completed with cryptocurrency. For those wary of using online crypto exchanges, the city offers various crypto ATMs.
- Switzerland: Zug, known as “Crypto Valley,” allows its residents to pay with Bitcoin for services like taxes since 2016, while Switzerland is recognized as a prominent cryptocurrency hub and host of various crypto conferences.
- China: In Hong Kong, a special administrative region, residents can settle restaurant bills using Bitcoin. Additionally, immigrants can present Bitcoin, Ethereum, and other digital currencies as proof of wealth when visiting.