Fewer Hong Kong businesses accept bitcoin today than was the case when the virtual currency exploded in popularity and price, in a sign of a struggle to become a mainstream payment option.
Leslie Wu Wai-leung, owner of a Mong Kok-based florist, was still a firm believer in bitcoin despite the adoption rate among businesses and consumers in Hong Kong being “very slow”.
“The adoption rate hasn’t take off locally, but globally it has exploded,” said Wu, the owner of
Flower Delivery Hong Kong, adding that he was well-placed to capture a slice of the consumer spending in bitcoin. Wu said bitcoin was still attractive due to its lower transaction costs for overseas sales, typically less than 1 per cent compared to 5 per cent of the sales cost on PayPal, and there was no limitation on the countries buyers were coming from.
From as many as 20 business accepting bitcoin in 2014, that has scaled back to less than half, according to research by the Post.
Bitcoin’s reputation took a huge blow after a locally-based bitcoin trading platform Bitfinex suffered a security breach to the tune of US$65 million.