How Realistic Is Air China’s XRP Payment Integration Plan?

Air China’s loyalty partner Wetour has announced plans to integrate XRP payments. However, strict crypto bans in China mean the service will likely operate only outside the mainland.

The airline’s PhoenixMiles program is set to expand payment options through a new partnership with Nasdaq-listed Webus International. This program serves more than 60 million members.

XRP Ambitions Of Air China and Wetour

In a latest press release, the travel company’s Wetour platform said it would support XRP payments for overseas services. This would include airport transfers and chauffeur bookings.

The plan marks one of the most prominent references yet to a state-owned Chinese enterprise experimenting with cryptocurrency-linked payments. 

However, Beijing’s complete ban on crypto trading and payments makes it impossible for Air China to roll out XRP inside the country.

Notably, Air China is majority-owned by China National Aviation Holding. It’s a state enterprise under central government supervision. 

As such, the airline cannot legally accept digital assets like XRP for domestic flights, ticketing, or loyalty transactions.

But the partnership announcement was very carefully worded. It specifies that XRP integration applies to Wetour’s “overseas platform”. 

That leaves the door open for PhoenixMiles members abroad to pay with XRP in countries where regulations allow it, while keeping domestic operations compliant with Chinese law.

Global Context

Other international carriers, including Emirates and Qatar Airways, have experimented with crypto-based payments and loyalty tokens in recent years. 

Air China’s move aligns with a broader trend of airlines exploring blockchain to improve settlement times, reduce costs, and tokenize rewards.

Still, China remains a notable outlier. The government continues to promote its digital yuan, or e-CNY. 

Therefore, Air China’s adoption of XRP-linked services will remain limited to international hubs and partners outside Beijing’s jurisdiction.

While PhoenixMiles members may soon be able to pay for services in XRP abroad, the program is unlikely to extend the option to flights or services within China’s borders.

The development highlights the complex intersection of state ownership, international competition, and blockchain adoption. It shows how Chinese enterprises can cautiously test digital assets abroad, even as crypto remains banned at home.