Toulouse, France, has become the first European city to allow residents to pay for public transport using Bitcoin and other cryptocurrencies. Since March 17, commuters can purchase metro, tram, cable car, and bus tickets using crypto.
This move aligns with France’s growing push for crypto-friendly services. Cannes is reportedly exploring a similar payment system for its residents.
How Crypto Payments Work in Toulouse
The initiative, launched by Tisséo, Toulouse’s public transport operator, enables crypto payments via an Android app. Users can pay with Bitcoin or one of 70 altcoins, which are instantly converted into euros. Binance Pay is among the supported payment methods.
Deputy Mayor Sacha Briand described the move as an experimental project to assess crypto adoption in public services. The Toulouse administration sees long-term potential in cryptocurrency integration.
The payment infrastructure was developed by Paris-based fintech company Lyzi, which helps businesses such as pharmacies, coworking spaces, and restaurants accept crypto. Lyzi also facilitates crypto payments for Printemps fashion stores across France.
Challenges and Criticism
Not everyone is on board with the idea. Some Bitcoin purists criticize the use of Binance as an intermediary, preferring a decentralized approach without middlemen or altcoins.
A bigger challenge is taxation. In France, crypto transactions must be declared on tax form 3916-bis and are subject to a 30% capital gains tax. How this impacts adoption remains to be seen. Regulators may need to adjust tax rules to encourage wider crypto use.
France’s Crypto Adoption Is Growing
France has recognized cryptocurrency storage and transactions as legal since 2020, adhering to AML regulations. The recent crypto push in Toulouse reflects a broader rise in crypto adoption.
According to Gemini’s 2024 report, 18% of French citizens now hold crypto. Tisséo’s decision to support Bitcoin payments anticipates further growth in crypto ownership and usage.
This initiative could lay the foundation for a crypto-based payment ecosystem, making digital currencies more practical for daily transactions.
Other Bitcoin-Friendly Cities Around the World
Toulouse may be Europe’s first city to integrate crypto into public transport, but other global cities have already embraced Bitcoin payments:
- Argentina: Since 2019, Argentinians can top up their SUBE transit cards with crypto, used in 60+ cities.
- United Arab Emirates (Dubai): While Bitcoin isn’t legal tender, Dubai allows crypto payments in hotels, malls, restaurants, real estate, car rentals, and flights. The city even has crypto ATMs.
- Switzerland (Zug – “Crypto Valley”): Zug, a major crypto hub, has accepted Bitcoin for tax payments since 2016 and hosts leading blockchain conferences.
- China (Hong Kong): Residents can use Bitcoin for dining and even present crypto holdings as proof of wealth when visiting.
Toulouse’s experiment may inspire more European cities to follow suit, pushing crypto closer to mainstream adoption.
