In Toulouse, France, residents can pay for their metro, tram, cable car, and bus tickets with Bitcoin and other cryptocurrencies.
In fact, starting on March 17, Toulouse became the first European city where crypto can legally be spent on public transport.
The move comes as France actively seeks to deploy various crypto-friendly services. It is reported that Cannes is also working on a payment system that will accept crypto from residents.
Tisséo, a Toulouse public transport operator, launched its solution first. The tickets can be bought via an Android-based mobile app for Bitcoin or one of the 70 altcoins. The crypto is instantly converted to euros. Binance Pay is among the supported payment options.
According to the deputy mayor of Toulouse, Sacha Briand, the initiative is experimental as the company wants to check how widespread the use of crypto can become in the long run. The press release emphasizes that the Toulouse administration is interested in the long-term prospects of cryptocurrency integration.
It’s worth noting that Paris-based Lyzi developed the crypto payment infrastructure for Tisséo. This white-label fintech company actively helps other businesses, including pharmacies, coworking spaces, and restaurants, accept crypto payments.
Lyzi also facilitates crypto payments for Printemps fashion stores across France.
Some of the Bitcoin maxis have already expressed discontent over the fact that the service involves an intermediary of Binance, as they disapprove of the use of any middlemen or altcoins.
Advocates of the move by Tisséo argue that having Binance involved was important to ensure the speedy execution of transactions.
A more serious hurdle is the necessity to declare crypto transactions via tax form 3916-bis. Crypto transactions incur a 30% capital gains tax. Time will tell how easy it is. Regulators will likely have to adjust the rules to make crypto payments easier. The stats indicating how many people use the new payment avenue are unavailable as of press time.
Crypto in France
France is one of the countries that adopted general crypto regulations in 2020, making cryptocurrency storage and transactions legal and inspectable as France complies with the AML rules.
The press release dedicated to the crypto implementation in Toulouse mentions that cryptocurrency is becoming more popular among the French. The 2024 report by Gemini indicates that around 18% of French citizens hold crypto. Tisséo’s adoption of crypto payments for city transit was made in anticipation of the further growth in the number of crypto owners.
While the new initiative can attract more people’s interest in owning crypto, it may also create a robust infrastructure where people can use crypto for daily purchases once the share of crypto holders becomes critical.
Bitcoin cities
Although Toulouse became the first European city to let residents use crypto to pay for public transport, several other countries boast various services that can be paid for in crypto:
- Argentina: In 2019, Argentina allowed its citizens to top up the SUBE cards used in around 60 cities to pay for public transport with crypto.
- United Arab Emirates: Dubai is arguably one of the first so-called “Bitcoin cities” that come to mind when considering places to spend Bitcoins. Although Bitcoin is not registered as a legal tender in the United Arab Emirates, it can be spent there in hotels, malls, and restaurants. It is possible to rent a vehicle or book a flight using Bitcoin. Real estate purchases are also possible via crypto in Dubai. Those who don’t feel confident using online crypto exchanges may use one of the city’s crypto ATMs.
- Switzerland: Another notable example is the city of Zug, dubbed “Crypto Valley.” The city hosts the same crypto conference, while Switzerland itself is a well-known cryptocurrency hub. Zug allowed its residents to pay in Bitcoin for services (i.e., taxes) back in 2016.
- China: Hong Kong, considered a special administrative region, is another place where people can pay for dinner with Bitcoin. Immigrants can also use Bitcoin, Ethereum, and other digital assets as proof of wealth when visiting Hong Kong.