Japanese Railway Company JR East Could Accept Virtual Currencies

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Crypto adoption could improve with the help of Japan’s largest railway company JR East. The firm is currently considering the possibility to support virtual currencies in the country. At the same time, the company is analyzing the effects of launching a stablecoin for individuals to pay for their train tickets. The information was released by the Japanese news program ANN News.

JR East Considers Virtual Currencies

Cryptocurrency adoption will grow as soon as companies start embracing digital assets. One of these firms could soon be JR East, the largest railway company in Japan. JR East could start accepting cryptocurrencies, including stablecoins, to pay for their train journeys.

In order to make these solutions available for users, the firm is working with the service provider IIJ. In this way, travellers will be able to pay for train tickets using their favourite cryptocurrency. JR East has also invested in the cryptocurrency exchange DeCurrent that has been approved by the local regulatory agency the Financial Conduct Authority (FSA).

JR East will allow users to purchase their tickets using digital assets with the Suica smartcard. Moreover, the firm will be working with DeCurrent and IIJ to deal with connectivity and network services.

The Japanese crypto news outlet Coinpost quoted the Managing Executive Officer of JR East, Shinobu Noguchi, saying:

“JR East’s Suica operates the same settlement business, and is in a position to invest in Dikalet, and is highly expected to develop its services to create a payment infrastructure based on transport infrastructure. We started by charging and using cash, which is a general-purpose payment method, but I think that it will change greatly as the current of “cashless” flows.”

Moreover, Nikkei reports that Mizuho Financial Group (MFG) will begin to pilot Suica payments using J Coin, the bank’s digital currency pegged to the Japanese yen (JPY).

It is worth mentioning that Japan has implemented a very strict legal framework for crypto companies to develop their activities in the country. The decision was taken by the local authorities after some irregularities in the space. The cryptocurrency exchange Coincheck was hacked back in 2018 and it lost more than $500 million in NEM (XEM) coins.

The Suica cards are known in Japan and are accepted in more than 580,000 stores in the country. There are also 75 million Suica cards in circulation. Thus, implementing crypto payments for train tickets with JR East will be a very important thing for the mass adoption of digital assets.

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