Toulouse Crypto Payments Bring Bitcoin And Altcoins To Public Transport

Toulouse has become the first city in Europe to let people buy metro, tram, cable car, and bus tickets with Bitcoin and other cryptocurrencies. The pilot began on March 17, signifying the French city’s drive to make digital assets part of daily transactions. Tisséo, Toulouse’s public transport operator, spearheaded this initiative by launching an Android-based mobile app that accepts Bitcoin and over 70 altcoins. Supported by Binance Pay, the solution converts crypto to euros instantly, enabling frictionless ticket purchases.

The Journey to Crypto-Powered Transit

Why Toulouse?

• The Toulouse city council aims to gauge how popular cryptocurrency payments might become over the long term.
• Tisséo’s management emphasizes the experimental nature of the rollout, planning to reassess usage statistics and adoption rates.
• France has displayed growing interest in crypto usage, with Cannes reportedly working on a similar plan.

How It Works

• Passengers use Tisséo’s mobile app to choose Bitcoin or another supported altcoin.
• The app instantly converts crypto to fiat euros using Binance Pay.
• Ticket purchase is completed with no perceived delay, creating a near-seamless user experience.

Lyzi, a Paris-based white-label fintech company, developed Tisséo’s payment infrastructure. Beyond Toulouse’s public transport system, Lyzi has facilitated crypto payments for pharmacies, coworking spaces, restaurants, and even Printemps fashion stores across France.

Adoption Hurdles and Community Reaction

While crypto proponents praise Toulouse’s decision, a few obstacles remain:

1. Middlemen Concerns: Bitcoin maximalists question the involvement of Binance Pay, as they see any intermediary or altcoin usage as at odds with Bitcoin’s core ethos.
2. Tax Compliance: France’s tax form 3916-bis requires reporting of crypto transactions, potentially incurring a 30% capital gains tax. Observers wonder if regulators will simplify these rules to boost everyday crypto payments.

Authorities haven’t yet released data on how many riders have chosen crypto-based payments. City officials remain optimistic, citing the potential for digital currencies to grow in popularity, as indicated by a 2024 Gemini report finding that 18% of French citizens own crypto.

France’s Progressive Crypto Landscape

France has recognized and regulated cryptocurrency since 2020. Financial institutions monitor activity in line with AML regulations, but the framework also provides legal clarity for crypto transactions and custody. Tisséo’s crypto initiative joins a broader French effort to test real-world applications.

Other European Initiatives

France is not alone in exploring crypto-based city services. Several cities worldwide now let residents pay for public transport with digital assets, including parts of Argentina and Switzerland. Nonetheless, Toulouse stands out as the first European city to deploy an official, city-wide platform for crypto-powered tickets.

Beyond Toulouse, several regions have embraced diverse crypto use cases:

• Argentina: Citizens in around 60 cities can reload their SUBE transport cards with crypto.
• Dubai, UAE: Travelers can pay for hotels, restaurants, flights, and even real estate using Bitcoin.
• Zug, Switzerland: Nicknamed “Crypto Valley,” Zug has permitted residents to pay taxes in Bitcoin since 2016.
• Hong Kong: Residents and visitors use Bitcoin to cover dinner bills, with some immigrants also proving wealth via crypto holdings.

By joining the growing list of crypto-friendly cities worldwide, Toulouse Crypto Payments reflect France’s forward-thinking approach to embracing digital assets. While the pilot will need time to prove its success, the city’s readiness to experiment signals a new era in public transport convenience. If the initiative gains traction, daily crypto payments could become an integral part of urban life in Toulouse—and potentially expand to other French regions eager to push financial innovation.