Japanese shipping company Nippon Yusen K.K. (NYK) is reportedly launching its own digital currency for crew members. Established in 1885, Nippon Yusen is Japan’s largest shipping firm in terms of sales.
People familiar with the matter reported that NYK is introducing its own digital currency for crew members in order to simplify the process of sending, managing and converting money into marine worker’s local currencies. The currency will be tied to U.S. dollars, which would help avoid serious swings in value.
Generally, the firm’s seafaring workers get paid in fiat. They are also likely to be from other countries apart from Japan. Also, the company hopes their digital token solution will streamline the transfer of funds from Japan to other nations.
However, it is not clear whether NYK’s digital currency will use blockchain technology or be a form of cryptocurrency. As per some anonymous sources, NYK is working with banks and software development companies to ensure the currency’s ability to be converted into local currencies.
NYK will most probably introduce the digital currency in the first half of 2019 and the initiative requires the use of smartphones. Along with paying their own workers, the company is also looking to offer the currency to other shipping operators.
NYK has already conducted a series of tests and is now seeking a patent for their technology. Port and shipping authorities around the world have already widely accepted the potential of blockchain technology.
The new platform plans to:
“allow shippers to digitize and organize their dangerous goods documents and automatically connect with relevant parties to streamline the approval process.”
Port and shipping authorities around the world have already substantiated the potential of blockchain technology. Earlier this month, nine major terminal operators and shipping companies signed a Memorandum of Understanding (MoU) to launch an open digital platform based on distributed ledger technology (DLT).
Last month, Europe’s largest port, the Port of Rotterdam, partnered with major Dutch bank ABN AMRO and the IT subsidiary of Samsung to test blockchain for shipping. The members of the blockchain trial expect the technology will help reduce shipping time and simplify financial transactions.
Such enterprising ventures will no doubt be widely appreciated by the knowledgeable crypto community. As they say, great things begin with a small step, the technical footprint of digital coins will slowly engulf the masses.