Japan’s Hokkoku Bank Introduces Stablecoin Backed by Bank Deposits

• Concerned Japanese crypto aficionados are weighing the benefits and drawbacks.
• One may use this stablecoin to make convenient purchases at participating retailers.

The first Japanese stablecoin backed by bank deposits was introduced by Hokkoku, a provincial bank in Japan. This move caused quite a stir. Concerned Japanese crypto aficionados are weighing the benefits and drawbacks of the new development. Furthermore, the stablecoin’s functionality is under scrutiny.

The success of their Tochituka app, which was introduced last year in conjunction with the Suzu City administration, is the driving force behind this project. Tochipo points may be earned and used at participating local shops using the app. To add to that, the same app may now be used by current Hokkoku bank account holders to load their Tochika stablecoin.

In-app Payments Underway

One may use this stablecoin to make convenient purchases at participating retailers, and it is backed by deposits. Considering that Japan is a nation where physical currency is above all, the move is also revolutionary.

Thus, Hokkoku offers a low merchant charge of just 0.5% for app-based cashless transactions in an effort to attract retail establishments. Furthermore, the bank is trying to convince businesses who now issue paper gift certificates to start accepting digital ones using the app’s point-based transactions.

With an eye toward the future, Hokkoku Bank intends to implement in-app payments between individuals by the end of the year. Additionally, it hopes to recruit other banks from Ishikawa prefecture to participate in its program. More than that, it hinted at future plans to expand into other areas.

This ground-breaking platform’s technology is created by Digital Platformer. Although several banks across the globe have launched stablecoin programs, what sets Hokkoku apart is its emphasis on retail clients and the fact that it is backed by real bank deposits.

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