Trip.com Trials Stablecoins Payment for Travel Bookings

Trip.com has initiated a trial allowing international travellers to pay for prepaid hotel and flight bookings using stablecoins. The Shanghai based online travel agency introduced the ability to use USDT and USDC tokens on its international platform earlier this month. According to the Post, a customer service agent confirmed that the payment option became available for users located in specific geographical regions. These tokens are commonly referred to as Tether and USD Coin and are pegged to the value of the United States dollar.

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The availability of the digital currency choice is determined by the internet protocol address of the individual making the booking. While the service is visible to some overseas users, it remains inaccessible to those within mainland China and Hong Kong. According to SCMP, a reporter from the blockchain news outlet Foresight News successfully completed transactions for a flight and a hotel while staying in Vietnam. The reporter discovered that the prices offered for these stablecoin bookings were lower than the rates available on Ctrip, which is the domestic application used in mainland China.

This move by the travel group occurs while the central government in Beijing maintains a rigorous stance against activities related to cryptocurrency. The People’s Bank of China clarified its position in November by stating that stablecoins do not satisfy the anti money laundering requirements of the mainland. This statement has served to cool expectations that the Chinese authorities might relax their historical crackdown on digital assets to keep pace with regulatory shifts in the United States.

Despite the regulatory environment at home, various Chinese technology companies are testing stablecoin applications in offshore markets. Firms such as the fintech giant Ant Group and the e commerce group JD.com have explored similar initiatives within Hong Kong. Ant Group is an affiliate of Alibaba Group Holding, which is the owner of the Post. These companies are reacting to the city establishing a new licensing regime for issuers of stablecoins as part of a broader ambition to become a global centre for digital assets. However, these efforts continue to face significant pressure from the regulatory environment in Beijing.

The wider market for stablecoins has seen substantial growth recently as the total market value climbed beyond 300 billion dollars this year. A report from the blockchain analytics firm Artemis indicated that stablecoin payments reached over 10 billion dollars during the month of August. This volume is more than double the 4.3 billion dollars recorded in the same month of the previous year.

While retail applications such as travel bookings are emerging, the majority of this transaction volume is currently driven by business to business transfers. Most of the tokens currently in circulation are pegged directly to the value of the United States dollar.