Air China’s loyalty program, PhoenixMiles, is gearing up for a technological leap. In a move that has the cryptocurrency community buzzing, Wetour, a strategic partner of Air China, is planning to integrate XRP payments for its members. While this development sounds promising, the initiative is restricted to overseas platforms due to China’s stringent crypto regulations—a reality that can’t be ignored.
The Ripple Effect
XRP, the digital asset at the heart of this plan, is renowned for its speed and efficiency in cross-border transactions. Wetour’s integration of XRP payments into PhoenixMiles could potentially streamline the way members accrue and spend their loyalty points, making it faster and more cost-effective. According to industry insiders, this is a bold step that aligns with the global trend of digitizing financial transactions. “The integration of XRP into a major airline’s loyalty program is a significant endorsement of the cryptocurrency’s viability in real-world applications,” says Alex Chow, a blockchain analyst in Hong Kong. This follows the momentum seen in XRP’s legal victories that have bolstered confidence in its use.
However, there’s a catch. The initiative is limited to overseas platforms, a direct consequence of China’s regulatory stance on cryptocurrencies. This limitation raises questions about its overall impact and sustainability. Still, many see it as an opportunity to test the waters in international markets, where crypto regulations are often more lenient.
Navigating the Regulatory Maze
China’s crypto ban is no secret. Since 2017, the country has maintained a firm grip on digital currency activities, banning initial coin offerings and shutting down exchanges. In this context, the introduction of XRP payments by Wetour is a calculated risk. “The regulatory environment in China is a significant barrier, but it also creates a unique testing ground for innovation in overseas markets,” remarks Li Wei, a legal advisor specializing in fintech. For a deeper dive into the regulatory implications, see our coverage of Japan’s proposed crypto rule overhaul.
For now, the integration will focus on markets where cryptocurrency use is more prevalent. Countries in Southeast Asia and parts of Europe are likely candidates, where both crypto regulations are more relaxed and the appetite for digital assets is growing. By targeting these markets, Air China and Wetour are positioning themselves as pioneers in the aviation loyalty sector—a move that could pay dividends if and when crypto restrictions ease in China.
A Look Ahead
While the current regulatory landscape in China might seem like a roadblock, it’s also a catalyst for exploring new horizons. The potential for expanding the program to include other cryptocurrencies or digital assets in the future remains open. As global economies slowly warm up to the idea of digital currencies, initiatives like this could pave the way for broader adoption.
The integration of XRP payments in PhoenixMiles is more than just a technological upgrade; it’s a statement. It’s a nod to the future of finance where digital currencies play a pivotal role. Yet, it also underscores the challenges that come with navigating complex regulatory environments. As Air China and Wetour push forward with their plans, the world will be watching—curious to see if this venture can truly take flight beyond China’s borders.
In the end, the success of this initiative will depend on many factors, including the adaptability of the technology, the acceptance by PhoenixMiles members, and potential shifts in China’s regulatory stance. While the road ahead is uncertain, one thing is clear: the conversation around cryptocurrency and its real-world applications is far from over. And for Air China, the journey is just beginning.
Source
This article is based on: How Realistic Is Air China’s XRP Payment Integration Plan?
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
