the first japan bill containing virtual currencies is expected to come on april which recognizes bitcoin as a method of payment.Although,it doesnot define bitcoin as a legal currency,it is still considered as a remarkable progress for bitcoin in japan.Hope, most of tourists who would go to japan to see 2020 olympics would be able to pay in bitcoins.
What is meant by it being a paying method but not a legal currency? So, can you buy a ticket or rent a flat using bitcoin? Or perhaps a private company may decide to accept btc but governmental institutions can not?
Japan is a progressive country, so it is likely for it to accept innovations.
Acceptance of bitcoin depends on the merchants. If they can handle the volatility of the price, they will be OK. There are merchants now worldwide, who accepts bitcoin, despite of the current country's regulations, they just convert somehow their accepted bitcoins to local fiat currency and they're fine. I don't know about longer supply chains which use bitcoin from the beginning to the end. This could be possible in Japan, after this decision.