Toulouse, France, has made history by allowing residents to pay for metro, tram, cable car, and bus tickets using Bitcoin and other cryptocurrencies.
As of March 17, Toulouse is now the first European city to accept cryptocurrency for public transport fares.
The shift aligns with France’s initiative to enhance crypto-friendly services. Reports indicate that Cannes is also exploring similar cryptocurrency payment systems.
The public transport operator Tisséo launched this innovative payment solution, which enables ticket purchases through an Android app using Bitcoin or any of the 70 altcoins, with funds instantly converted to euros. Binance Pay is one of the supported payment methods.
According to Toulouse’s deputy mayor, Sacha Briand, this experiment aims to assess how widespread cryptocurrency usage can become in the future. The initiative has sparked interest from the Toulouse administration regarding the long-term integration of cryptocurrencies.
While Tisséo’s infrastructure was developed in partnership with a Paris-based fintech company focused on helping various businesses accept crypto payments, the push for cryptocurrency acceptance is representative of a broader trend in urban transportation solutions.
Some Bitcoin advocates have expressed concerns regarding the involvement of Binance, an intermediary that many in the cryptocurrency community view unfavorably. However, proponents argue that Binance’s participation is key for ensuring rapid transaction processing.
A significant challenge remains with the requirement to declare crypto transactions on tax form 3916-bis, which incurs a 30% capital gains tax. It remains to be seen how user-friendly this process will be as regulatory adjustments are anticipated to facilitate crypto payments further. Current statistics on user engagement with this new payment option are unavailable at this time.
Crypto in France
France has been at the forefront of cryptocurrency legislation since adopting general regulations in 2020, legalizing the storage and transactions of cryptocurrencies in compliance with anti-money laundering rules. With around 18% of French citizens owning cryptocurrency, the adoption of crypto payments for public transport is poised to capitalize on this growing interest.
This new initiative not only aims to boost interest in cryptocurrency ownership but also sets the groundwork for a robust payment infrastructure for everyday purchases as the number of crypto holders rises.
Bitcoin Cities
While Toulouse is the first European city to authorize crypto payments for public transport, several other regions worldwide have similarly embraced cryptocurrency:
- Argentina: In 2019, Argentina permitted its citizens to recharge SUBE cards used for public transport in around 60 cities using cryptocurrencies.
- United Arab Emirates: Dubai is a notable hub for cryptocurrency, allowing Bitcoin transactions in hotels, malls, and restaurants, as well as for vehicle rentals and flight bookings. Real estate purchases via crypto are also available in Dubai.
- Switzerland: Zug, recognized as “Crypto Valley,” offers residents the option to pay in Bitcoin for services like tax payments since 2016.
- China: Hong Kong allows the use of Bitcoin for dining, and immigrants can use various digital assets as proof of wealth during visits.
