The biggest railway and subway operator in japan which is used by millions of Japanese people every day is considering integrating crypto into its card payment system.
A report from ANN news- a major news network in the country run by the Asahi Corporation- Japanese railways is planning to put in place a crypto-currency company possibly an exchange in partnership with a major bank to integrate crypto-currencies.
Big Milestone for Crypto
If this move materializes- JR group moving forward to integrate crypto into the national transport card (suica card)- it will mark a major milestone for the crypto industry. This definitely has the potential of boosting crypto adoption to heights unseen yet.
According to the ANN news report it is likely that Japan railways will follow the Rakuten route by establishing its own crypto venture by setting up infrastructure that will enable the fast processing of payments.
In 2018, Rakuten- the country’s largest e-commerce company referred to by many as the “Japan’s Amazon” acquired a Bitcoin exchange which was known as everybody’s Bitcoin for $2 million, and placed it under its subsidiary known as Rakuten payments.
Analysts have it that this move was made inorder for Rakuten to integrate crypto payment options into its platform without passing the profits generated to a third party such as a crypto exchange.
In similar fashion, japan railways setting up their crypto venture will generate a new source of income for the outfit in the form of transaction fees from the crypto payments it will process. The number of people, who use the railway everyday coupled with the expected demand for the crypto service, must be driving JR group into establishing this venture considering how resource intensive it is to start such a venture.
Japan Ideal for this
Japan is the ideal market for a transportation group to integrate cryptos considering the fact that cryptos enjoy a mainstream following in the country. This is evidenced by the fact that japan is the second largest crypto market, thanks to the efforts of an open-minded and vigorous team of Japanese regulators.
Japan is already in the driver’s seat when it comes to merchant adoption with Bic camera, the largest electronics retailer in japan accepting Bitcoin payments for over a year now. Bit camera’s PR and IR chief disclosed that Bitcoin usage at the company’s stores countrywide had increased.
“When Bic Camera first installed the Bitcoin payment system in its stores, we expected that the customers paying in Bitcoin would mostly be foreigners. We noticed that Bitcoin was becoming very popular. Then the government announced that Bitcoin was officially legal, so we finally felt more comfortable introducing Bitcoin as a method of payment in our stores. Bic Camera always aims at responding to its customers’ demands, and there was a huge demand at the time” he said.
This move by the Japan railways group as stated earlier will definitely boost adoption to heights unseen. This coupled with the high merchant adoption will definitely make Japan ground zero in the crypto revolution.