Bitcoin Expanding in Japan

Bitcoin has been attracting lots of attention in Japan. But the number of people who use the crypto-currency, and businesses that accept it, are still limited. Some companies are looking to change that.

Online gourmet guide Gurunavi is rolling out a payment system for 10 restaurants in Tokyo this week. The company is going to watch how customers and businesses respond to the service. And it's got plans to expand the system nationwide next spring.

"Foreign tourists are accustomed to using the digital currency. We think more of them try to use bitcoin in Japan. We'd like them to be able to do this when they dine out," says a company official.

Another online-information provider, Recruit Lifestyle, began offering bitcoin-payment systems in July. Its clients include a leading eyewear chain. Company officials say a growing number of independent restaurants is also signing up.

Japan introduced regulations to protect crypto-currency users in April. The use of Bitcoin has since started to spread.

Three major Japanese banks are considering a foray into the expanding field of crypto-currencies by working together to develop their own.

Sources close to the matter say Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho will set up a joint council by the end of the year to discuss ways they can cooperate. They're planning to call on regional banks and other financial institutions to join the project. The 3 banks envision a digital currency equivalent in value to the Japanese yen that will make life more convenient for customers.

They plan to look at ways to combine bank accounts for cash and digital currency so account holders can use the crypto-currency like cash. The financial groups have been working on their own digital currencies, so it remains to be seen if they can agree on a unified standard. Global competition to develop digital currencies is intensifying as major IT firms enter the market.