Bitcoin Now an Official Payment Method in Japan

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. mode / moʊd / (n) – a method
    Example:

    Biking is a common mode of transportation in our country.


  2. enactment / ɛnˈækt mən / (n) – the act of making a law official
    Example:

    The enactment of new traffic laws provided more convenience to drivers.


  3. conglomerate / kənˈglɒm ər ɪt, kəŋ- / (n) – a large company consisting of several smaller businesses
    Example:

    The conglomerate owns food and clothing businesses.


  4. illicit / ɪˈlɪs ɪt / (adj) – illegal or unlawful
    Example:

    Yesterday, a group of individuals was arrested for illicit trade of endangered animals.


  5. convert / kənˈvɜrt / (v) – to transform
    Example:

    We need to convert our yen into dollars.


Article

Read the text below.

The Japanese government has recently passed a law accepting Bitcoin as an official mode of payment.


Developed in 2009 by an anonymous individual, Bitcoin is a form of digital currency that can be used to make transactions through computers or mobile apps. Upon the enactment of the new law, Japanese electronics company Bic Camera announced that it will accept Bitcoin as a form of payment in two of its Tokyo stores. Recruit Lifestyle, another major Japanese conglomerate, is also set to use a similar system through an app called Airregi, which is currently used by over 260,000 businesses.


In the past, using Bitcoin was associated with illicit online activities because it can be used for purchasing without revealing the identities of buyers and sellers. Nevertheless, using Bitcoin also comes with advantages. For instance, tourists can purchase items in a foreign country without going through currency exchange. With Bitcoin, they can make a purchase without paying additional fees to banks or governments. As a result, the method is cheaper and more efficient.


Several major businesses have already integrated Bitcoin into their payment system by partnering with a processing company to convert the digital currency into cash. In January 2014, Overstock.com allowed customers to use Bitcoin as payment for devices such as laptops and television sets. Expedia, a popular online travel booking company, has been using Bitcoin since June 2014 for hotel bookings. The company also expects to use the digital currency for its other booking services.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• As a consumer, would you consider using Bitcoin as a payment method? Why or why not?
• If you had a business, would you accept Bitcoin as a payment method? Why or why not?

Discussion B

• How do you think the new Japanese law accepting Bitcoin as an official form of payment will affect people’s use of cash?
• Aside from Bitcoin, what other payment methods can be used for purchasing products and services?