Japan's Regional Banks Launch Local Digital Currency and Stablecoin Initiative: New Development
Japanese regional banks HokkokuBank and Kono Shinkin Bank have embarked on an exciting digital currency initiative. Commencing today, this project allows individuals who receive points for participating in community volunteer services to utilize them at local stores via a blockchain-powered app called Tochitsuka. However, their ambitious plans don't end here. Before the year concludes, HokkokuBank intends to introduce a deposit-backed stablecoin called Tochika.
This groundbreaking endeavor is centered in the Japanese Ishikawa prefecture, with Suzu City taking charge of issuing the local government points via the Tochitsuka app. Digital Platformer, the mastermind behind the app, has partnered with over 50 retail establishments where users can redeem these points. Their vision extends beyond Ishikawa, as they intend to launch this innovative solution in other regions as well.
What sets this initiative apart is the remarkably low transaction fees of just 0.5% for the upcoming stablecoin. This cost-efficiency is achieved by utilizing blockchain technology to facilitate data sharing between retail outlets and banks. It's worth noting that this blockchain is believed to be Hyperledger Iroha, with the core developer Soramitsu also hailing from Japan. Soramitsu's expertise with Iroha was previously harnessed in Cambodia's Bakong project.
Japan has been progressively embracing stablecoins, with new legislation enacted in June to support their issuance. Notably, Progmat Coin, a stablecoin platform initially developed by MUFG and now backed by multiple banks, has garnered significant attention. Binance, a prominent player in the cryptocurrency world, is even considering utilizing this platform to issue trust-based stablecoins, extending beyond the Japanese Yen. However, this plan is contingent upon regulatory approval.