SBI Motor Japan, a division of SBI Africa Co. Ltd, said on the 9th of this month that it will commence its acceptance of Bitcoin payments for cars in Ripple (XRP) and Bitcoin (BTC). SBI VC Trade Co. Ltd, the company’s cryptocurrency exchange, has been designated for processing payments to promote this new move.
The company is a prominently used automobile dealer in Africa, selling around 5000 vehicles every year. The company’s operations cover Tanzania, Kenya, Zambia, and other African countries, as well as Ireland, the Cayman Islands, the Bahamas, and the Caribbean. According to the website of the company, the move toward Bitcoin payment even with non-custodial wallets is consistent with the company’s attempts to assist offset the shortage of financial services that affects many undeveloped or developing countries throughout the world.
According to World Bank universal findex data, 1.7 billion adults worldwide do not have a bank account in 2017, with a large percentage residing in emerging nations such as Africa. In the future, the company intends to broaden the list of cryptocurrencies that could be used for payment. This is in reaction to the increased demand for cryptocurrency transactions.
Progress in a Tough Time
Despite the current volatile environment of the crypto industry, the company’s embrace of digital currency for the purchase of its services is a step forward in Bitcoin adoption in enterprises. With the advent of blockchain technology, non-custodial wallets can now be used. An individual can control and operate their cryptocurrency’s login information as a user of a blockchain wallet such as ZenGo or MetaMask. This gives customers total access to their finances as well as cryptocurrency assets (coins, tokens, and NFTs) that they may use to make purchases. This means that any one of those 1.7 billion people could be their bank.
Japanese cryptocurrency acceptance has been steadily increasing in recent years. According to the Japan Virtual and Crypto Assets Exchange Association (JVCEA), there has been an increase in crypto transactions throughout the country’s cryptocurrency exchanges, including some of the country’s top exchanges, such as bitFlyer and Rakuten. Japanese VCEA’s estimate for October 2020 was that 73 million yen was exchanged in cryptocurrency spot trades, followed by over 417 million yen by the end of February 2021 and nearly 28.5 billion units of digital currency by the end of March 2021.
Good News for Bitcoin and Ripple
BitFlyer, one of Japan’s leading cryptocurrency exchanges, offered its Japanese Bitcoin market liquidity pool to European users in September 2021. Previously, despite Japan being one of the world’s major Bitcoin markets, European crypto traders were unable to conduct Bitcoin transactions in the BTC/JPY market. According to statistics, the Japanese yen accounts for over 20% of global BTC to fiat currency transaction activity. Furthermore, bitFlyer, Japan’s largest cryptocurrency exchange, accounts for more than 70% of the JPY transaction volume. As a result, bitFlyer was the first exchange platform to provide inter trading access to Japan’s Bitcoin market. Coinbase will also expand its services to Japan in 2021 in collaboration with Mitsubishi UFJ.
Today, Japan has the most developed regulatory environment for digital currencies in the world, with Bitcoin and other digital currencies recognized as legal property. With the new SBI Motor Japan development, Bitcoin transactions in the Japanese market have earned yet another area for use and implementation.
As more people become aware of this development in Africa and other places where the company operates, we may anticipate higher Bitcoin adoption as more people use any of the cryptocurrency exchanges permitted in Japan to make purchases. They may find it far more convenient to transfer funds across borders, which is unusual for traditional banks. More vehicle sellers in such areas will change their fiat currencies to Bitcoin to make remittances.
The SBI Motor Japan initiative has additionally been useful to Ripple. This development is perceived as a big leap forward for Ripple, which has been grappling with a lawsuit for promoting unregistered property as XRP in 2020. The case has inflicted a sizable blow to XRP and its clients with a few exchanges retreating the coin from the ones indexed on their platform. Brad Garlinghouse, Ripple’s head, is stated to be positive in hopes that the blockchain-based digital payment platform’s long-running conflict with America’s Securities and Exchange Commission might bring about a positive conclusion.
In recent times, we have seen a tremendous surge in the popularity of cryptos as a legitimate payment means by many enterprises. One contributing reason is the liquidity of digital currencies like XRP and BTC. Currently, a few automobile brands receive cryptocurrency as payment: Audi, BMW, Maserati, Mercedes, Volkswagen, and Ferrari. SBI Motor Japan has now joined this group.
The cryptocurrency market is highly tradable due to its high liquidity. This is advantageous for SBI Motor customers who choose to use the company’s new digital currency transaction option. Payments utilizing the preferred exchange platform will be completed without delay since there is no intermediary party validating the payment.
Customers who pay with digital currencies might avoid rules that may be restricting to their business. Individuals in various parts of the world have a limit on the number of transactions they can conduct across borders, and their accounts are monitored by the government using the Bitcoin blockchain explorer. There is no need to be concerned about surveillance or censorship when using digital assets.
Regardless of the current challenges faced by cryptocurrencies and exchange platforms, worldwide acceptance of cryptocurrencies as an online transaction medium is on a predictable upward trend. The aim is for legislators across the world to develop better and more accommodating policies that do not jeopardize the underlying ideals of the blockchain industry.
The merit of this new technology would produce a better economic society for all of us. Perhaps one day we’ll be able to pay for college tuition using digital currencies, or many corporations will pay wages and bonuses in cryptos.