Nippon Yusen Introducing Crypto to Pay Employees
Nippon Yusen KK is set to launch its own cryptocurrency, which it will use to pay its employees. Nippon Yusen KK, founded in 1885, is Japan’s biggest shipping company and it generated revenues of ¥915.6 billion (~$8.1 billion) between the period of April 1 to September 30 this year.
Why Use a Cryptocurrency as a Payment Method?
Most of the seafaring workers that are employed by Japanese shipping companies are either Chinese or Filipino. Shipping companies usually pay their crew members in cash or a direct deposit into a bank account. The challenge is that the employees then need to move their money from one country to another, which is an expensive and lengthy process.
Yusen either owns or controls about 800 ships and each ship is manned by a crew of 20 to 23 people. Each vessel captain is given between $40,000 and $60,000 to keep aboard cover the crew’s salaries and pay for other cash expenses.
By using cryptocurrencies, it will be easier and cheaper for seafarers to manage, transfer and convert their money into their local currencies. Digital currencies also makes it easier for them to track as well as spend their income.
Creating a New Cryptocurrency
Sources that asked to remain anonymous since the matter is still private said that NYK was introducing its own cryptocurrency in the first half of 2019. This new cryptocurrency will be anchored to the US dollar so that it would not be impacted by the volatility of the cryptocurrency market. The new digital currency will require the use of smartphones.
These sources also said that the 135-year-old shipping company is working closely with banks as well as software developers to ensure that the cryptocurrency can be easily converted to the workers’ local currencies.
According to reports, Nippon Yusen has already successfully conducted tests utilizing its shipboard communications systems and is now looking to have its new technology patented.
In addition to using this new cryptocurrency to pay its employees, NYK is also looking at the possibility of offering it to other shipping companies.
Cryptocurrency in Shipping
NYK is not the only shipping company to explore options using cryptocurrencies and Blockchain technology. Port as well as shipping authorities across the globe have already started developing Blockchain based solutions for their operations.
This month alone, 9 major shipping companies and terminal operators signed a MoU (Memorandum of Understanding) to launch a new DLT platform, which will allows shippers to organize as well as digitize their dangerous goods documents and also streamline the approval process.