China accounted for 90 percent of bitcoin trade just one year ago.
But with Beijing banning initial coin offerings or ICOs
and regulators shutting down bitcoin exchanges there,
Japan is setting out on a different path, embracing the crypto movement.
Bitcoin trade here in Japan accounts for nearly half the global trade volume,
compare that to 25 percent in the U.S.
The number has surged since the government passed
a new law earlier this year, recognizing the digital currency
as a legal form of payment.
That law encouraged some big retailers here to partner
with bitcoin exchanges and begin accepting the digital currency.
There's already more than 4,500 stores that let you
pay with bitcoin here, and the Nikkei says that number could
increase five-fold by the end of the year.
So we’ve recruited Mai Fujimoto, who’s also known as Miss Bitcoin
here in Japan, to take us to some of these stores
that are accepting the digital currency.
You ready to go shopping?
Yes, sure.
Okay, let's head out.
Let's go.
Mai's become a type of 'crypto evangelist' in Japan,
blogging and tweeting about all things bitcoin.
Her nickname?
A way to familiarize people with what was largely an unfamiliar space
until recently.
You started investing in 2011. How much was bitcoin then?
About 1,000 yen.
1,000 yen?
That's roughly 10 U.S. dollars, a price that's jumped
more than 700 times since.
Here's 10,000 yen.
Okay.
I'll give that to you.
And then how do I get that in bitcoin?
Okay, so this is your QR code and I read this QR code.
Yeah, that's it.
This is Bic Camera, it’s one of the biggest electronics stores
right here in Japan and they just started accepting bitcoin in April.
So we’ve got our bitcoin on our phone. We’re going to go spend some money.
So that's .00336 bitcoin, it basically amounts to 1,803 yen.
I did manage to get a very cute towel.
Polka-dotted.
And all this shopping is kind of making me hungry.
So Mai, do you know of a good restaurant
around here that accepts bitcoin?
Yes, I know of a sushi restaurant near here.
Sushi restaurant? Okay, let's go there.
Fatty tuna and mackerel aren't the only things on the menu here.
A bitcoin ATM greets customers looking to top up their digital wallets.
In your daily routine, how much of what you use
is bitcoin and how much do you pay in cash or credit card?
Maybe, 90 percent I pay not bitcoin.
I only use bitcoin to send money overseas.
Mai says regulations built trust in the currency,
but people aren't necessarily using it to replace cash.
Bitcoin's still considered an investment, not an everyday currency here.
Many people have bitcoin now, now buy bitcoin.
Maybe we need time to use bitcoin, so maybe they
have to learn more about bitcoin.
That curiosity's led to an increasing number of public seminars
like this one on ICOs.
Hardcore hackers aren't the only ones here,
but housewives, bitcoin newcomers,
even professional matchmakers like Chieko Date.
She tells me her son encouraged her to invest,
and she has 2 million yen in four currencies now.
Japan hasn't been without problems.
Three years ago, the first major bitcoin exchange 'Mt. Gox'
collapsed and declared bankruptcy after hackers raided its accounts.
That's partly why regulators are responding with stricter rules this time,
requiring exchanges to maintain minimal capital reserves,
separate customer accounts and establish anti-money laundering and
'know your customer' or 'KYC' practices.
Bar owner Mike Verweyst says those rules aren't pushing
his customers away from the digital currency for now.
He processes bitcoin payments every day.
It’s surprising to see in Japan, they don't really seem to be
the first to adapt to new concepts like this.
In fact, they shy away from change mostly,
but maybe they’re going to grab it and run with it, I hope.
And with bitcoin still largely banned in China,
there's plenty of opportunity for Japan to take the lead.