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Toulouse Introduces Crypto Payments for Public Transport

Residents of Toulouse, France, can now pay for metro, tram, cable car, and bus tickets using Bitcoin and other cryptocurrencies. Starting March 17, Toulouse became the first European city where crypto payments are legally accepted for public transport.

France’s Push for Crypto-Friendly Services

This initiative is part of France’s broader effort to deploy more crypto-friendly services across the country. Cannes is reportedly working on a similar payment system to accept cryptocurrency from residents. Leading the charge, Tisséo, a public transport operator in Toulouse, launched the solution, allowing users to purchase tickets via an Android-based mobile app using Bitcoin or one of 70 supported altcoins. Transactions are instantly converted into euros.

Among the payment options integrated into the system is Binance Pay. According to Sacha Briand, the deputy mayor of Toulouse, this initiative is experimental, aiming to evaluate the potential adoption and long-term viability of cryptocurrency payments.

Lyzi’s Role in Crypto Payment Infrastructure

The crypto payment system was developed by Paris-based fintech company Lyzi. Lyzi specializes in creating crypto payment solutions for businesses such as pharmacies, coworking spaces, and restaurants. This company also facilitates cryptocurrency payments for major French retailers, including Printemps fashion stores.

While the initiative has garnered support, some Bitcoin enthusiasts voiced concerns over the involvement of intermediaries like Binance and the acceptance of altcoins. However, proponents argue that Binance’s role ensures faster and more reliable transactions.

Regulatory and Tax Challenges

A significant hurdle for users is the requirement to declare crypto transactions via tax form 3916-bis. Cryptocurrency transactions in France are subject to a 30% capital gains tax, which may deter some users. Regulators might need to reconsider these rules to encourage broader adoption of crypto payments.

As of now, statistics on the number of users leveraging this payment option in Toulouse are unavailable, but the initiative highlights a growing trend in cryptocurrency integration for everyday services.

France’s Crypto Adoption and Market Trends

France has been proactive in regulating cryptocurrencies, adopting general crypto regulations in 2020. These regulations made cryptocurrency storage and transactions legal under anti-money laundering (AML) compliance. A 2024 report indicates that approximately 18% of French citizens now hold cryptocurrencies, showcasing growing interest in digital assets.

The adoption of crypto payments for public transport in Toulouse reflects anticipation of increased cryptocurrency ownership in the country. As more people embrace crypto, the infrastructure for daily transactions using digital assets could become robust.

Global Examples of Bitcoin-Friendly Cities

While Toulouse leads Europe in crypto integration for public transport, other cities worldwide have adopted cryptocurrency for various services:

  • Argentina: In 2019, Argentina enabled citizens to top up SUBE cards used for public transport in over 60 cities with cryptocurrency.
  • United Arab Emirates: Dubai, often referred to as a “Bitcoin city,” allows cryptocurrency payments for hotels, malls, restaurants, vehicle rentals, flights, and even real estate purchases.
  • Switzerland: Zug, known as “Crypto Valley,” has been accepting Bitcoin for services like tax payments since 2016. Switzerland remains a hub for cryptocurrency innovation.
  • China: Hong Kong allows residents and visitors to use Bitcoin, Ethereum, and other digital assets for dining and as proof of wealth for immigration purposes.

Toulouse’s move to integrate cryptocurrency into public transport is a step forward in making digital assets more accessible for everyday use. As France continues to embrace crypto, initiatives like this could pave the way for broader adoption and integration across Europe.

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