The hotel industry has been working hard to convince investors that the technology and blockchain have the potential to revolutionise their business models.
However, many are not convinced, with some investors concerned that the currency could be used to hide money in the hotel room.
With the government’s latest guidance, there is now a greater emphasis on bitcoin as a potential payment option for some guests, but some are still sceptical about its value.
As a result, the hotel industry is exploring other payment options, such as the blockchain.
The technology behind the hotel chain is a cryptocurrency called Ether, which is being developed by the London-based blockchain startup Blockchain.
The company is developing a software to use a virtual currency called Ether in hotel booking processes, including booking hotel rooms.
The firm claims that Ether can be used as a payment option without the need for a bank account or credit card.
The aim is to enable people to pay for rooms using the hotel network without needing to pay an extra fee, while also saving hoteliers money in transaction fees.
While the company is not yet fully accepting Ether, it is working on a number of features which are being considered as part of the project.
Blockchain.io co-founder and CEO David Marcus told IBTimes UK that while he has yet to see any evidence of a surge in the currency’s value in the UK, he believes the company can help hoteliers with the issue.
“In the UK we are using a lot of fiat currencies and Bitcoin is one of those,” he said.
“The biggest challenge we face is the fact that we have no regulatory framework, we don’t have any legal framework to deal with the currency and there is no way for people to get their money out of there without resorting to fraud.”
The aim, according to Mr Marcus, is to “make a crypto currency that is a global payment platform, not an intermediary between bank accounts or credit cards.”
The hotel industry, which accounts for around 12% of the UK’s £50 billion economy, is currently using the blockchain as part the platform to make the process of booking hotel room more efficient and secure.
According to the company, its goal is to have Ether-enabled hotels on the market by the end of 2019.
Mr Marcus said that although Ether-based currencies will be a “long way off” for most people, they will allow for a “safer and more secure” payment method for hoteliers.
However he added that he was not worried about the currency becoming a money laundering tool.
“We have no idea if it will be used for money laundering or not,” he told Ibtimes UK.
“But if you want to make sure you don’t get caught up in the money laundering game, you don-t want to use Ether.”
This article originally appeared on IBTime UK