First Stablecoin Backed by Deposits Launched by Japanese Bank

Hokkoku Bank in Japan has recently launched a stablecoin backed by bank deposits, sparking discussions among the country’s crypto enthusiasts on its potential advantages and drawbacks. The introduction of the stablecoin follows the success of the Tochituka app, which was created in collaboration with the Suzu city government last year. Through the app, citizens can earn and spend Tochipo points at selected local stores, and now Hokkoku bank account holders can load up their Tochika stablecoin using the same platform.

Unlike other countries where cash still dominates, Japan has been slow to adopt cashless transactions. With this in mind, Hokkoku Bank is enticing retailers to join their initiative by offering a competitive trading rate of just 0.5% for cashless transactions made through the app. Additionally, the bank is looking to persuade paper gift certificate companies to transition to the digital space through point-to-point transactions facilitated by the app.

Looking ahead, Hokkoku Bank aims to enable person-to-person payments within the app by the end of the year. They are also working on attracting other banks in Ishikawa Prefecture to participate in their initiative and have plans to expand to other regions in the future. The technology behind this innovative platform is provided by Digital Platformer, utilizing Hyperledger Iroha developed by the Japanese company Soramitsu. While stablecoin projects are emerging worldwide, Hokkoku’s focus on retail customers and the backing of real bank deposits make it stand out from its competitors.

Overall, this move by Hokkoku Bank signifies a significant step towards increasing the adoption of cashless transactions in Japan and offering a secure and convenient payment solution for consumers and retailers alike.