Monday, June 30, 2014

Culturecom, co-founded by Jay Chou, will accept Bitcoin



When Bitcoin is rejected by giant technology and Internet companies which are qualified with finance business in China, the game platform UCAN under Culturecom, co-founded by Jay Chou, one of the most famous superstar in Asia, believes that Bitcoins, as a transaction channel, will especially benefit SMEs. The CEO Cheng Peng said the zero transaction cost of Bitcoin is much more attractive than credit card.

The CEO also pointed out that if mobile game companies publish games through iTunes, they need pay one third of their revenue to iTunes as operating fee. If customers use Visa or Master card for payment, companies also need to pay 3% - 10% of their revenue as cross-border service fee. After the payment, game companies usually can only get 10% of the revenue for profits. Although there are other open publish channels like Google, the limited operation of Google in mainland China will affect sales. On the contrary, with zero cost and open environment, Bitcoin largely attracted game companies as a transaction channel.

Although supervision authorities in mainland China forbid financial institutions and giant IT companies from being involved in or using Bitcoin, Cheng Peng believes that this instead is an advantage for SMEs to explore Bitcoin transaction. When dealing with Bitcoin, since supervision authorities regard Bitcoin as commodity, UCAN will categorise Bitcoin to inventory in financial statements.

UCAN planned to launch Bitcoin payment for mobile game in July or August. The next step is to promote Bitcoin to offline products and Apps. Cheng Peng emphasised that his company will not speculate or arbitrage Bitcoin, but only use it for daily business transaction.