Air China has announced the use of cryptocurrency XRP in its PhoenixMiles loyalty program for international services such as transfers and chauffeur bookings. However, it is important to note that cryptocurrency use remains banned in China.
XRP for International Services
Members of the PhoenixMiles loyalty program, with over 60 million participants, will be able to use XRP to pay for overseas services provided in partnership with Wetour. Services include airport transfers and chauffeur bookings, creating a unique opportunity for users outside of China.
Compliance with Legislation
The use of XRP is restricted to international markets, as Chinese laws prohibit airlines and other businesses from using cryptocurrencies for domestic flights and ticket purchases. This means that cryptocurrency usage is only available outside of China's territory, in countries with permissive legislation.
Trends in the Airline Industry
Air China's move aligns with a broader trend in the airline industry where carriers such as Emirates and Qatar Airways are already testing cryptocurrency payments and blockchain rewards. This allows them to not only process transactions faster but also experiment with new ideas for loyalty programs while still complying with local laws.
While Air China explores the use of cryptocurrency for international services, the application of XRP will remain limited within China. This move may open new opportunities in the airline industry, but significant legal obstacles remain.
