Tuesday, August 5, 2014
Bitcoin Payment Debuted on Physical Stores in Shenzhen, China
Since August of this year, stores accepting bitcoin payment have been emerging in Kexing Science & Technology Park, Shenzhen, where is full of Internet companies. These stores are mainly restaurant. In China, the central bank stated that bitcoin is not currency, but admitted that trading with bitcoin is legal. Although China is one of the biggest markets for bitcoin trade, its bitcoin payment market is still on infancy stage.
Stores: Currently bitcoin payment volume is still small
On the Yuanwei street of Kexing Science & Technology Park, several restaurants have accepted bitcoin as payment. Since the business is just started, cashiers are not familiar with the payment process yet. For example, 'Accept Bitcoin' label has been put on the front door of Cafe de Flore. However, when customers ask if they can pay with bitcoin, cashiers are still muddle-headed. They need time to skilfully process bitcoin payment.
As to Maggies's Club, another bar on the same street, the cashier clearly expressed that they accept bitcoin payment, but customers need download a third bitcoin payment platform, 'Btct' App. Customers transfer bitcoin to their Btct account to finish payment, which is like Paypal in Bitcoin world.
The CEO said she likes the convenience of third payment platform, which has no big difference from Group-Buying platform. Launching bitcoin payment for her bar is icing on the cake, and at least can attract btcer to expand customer pool, even though currently the volume is still very small.
Payment Platform: Still on user development stage
In December of last year, the statement of Central Bank of China has emphasised that bitcoin is not real currency, and forbidden financial institutions and payment institutions to price products or services with bitcoin, but admitted the legitimacy of trading bitcoin, which made bitcoin purely an investment product in China. After experiencing ups and downs, bitcoin price is stabilising between 3589.00 ~ 3634.92 CNY. Bitcoin payment in physical store is still rare. Some bitcoin insider claimed that currently the number of physical stores accepting bitcoin in China is less than 30.
As a third payment platform for promoting bitcoin, the main purpose of Btct is to change the atmosphere of bitcoin speculation in China to the original nature of bitcoin as a payment method. One of the co-founders of Btct said although the number of physical stores accepting bitcoin is still small, Shenzen where has strong Internet cogitation has advantages to promote bitcoin payment. Moreover, Btct provides CNY exchange, which shares the risk of bitcoin fluctuation.