[NEWS] Hokuriku Bank launches digital local currency service "Tochitsuka"

On the 2nd, Hokuriku Bank announced that it has begun offering the digital local currency service "Tochitsuka" in Suzu City, Ishikawa Prefecture. Kono Shinkin Bank and Digital Platformer, a blockchain developer, collaborated on the project.

This initiative will provide "Suzu Tochipo," a point system issued primarily by Suzu City.

The Tochitsuka app aims to provide a service that allows users to use two types of local currency: "Tochipo," a point system issued by local governments, and "Tochika," a stable coin that Hokuriku Bank will issue within the year.

First, on the 2nd, the service will begin using Tochitsuka to offer "Suzu Tochipo," a tochipo issued by Suzu City. Suzu City has been working to award points for volunteer activities through the "Suzu City Nature Coexistence Point System," but from now on, users will be able to receive Suzu Tochipo. 1 Suzu Tochipo is traded at the rate of 1 yen.

Suzu Tochipo is awarded by the city as "health points," "nature coexistence points," etc. Health points are awarded based on participation in health exercise classes and the number of steps taken in a day. 100 points are awarded for activities such as forest conservation activities such as reforestation and beach cleanup.

Hokuriku Bank and Suzu City announced the start of the project in April this year, aiming to become a cutting-edge cashless region. Suzu City points and the stable coins that Hokuriku Bank plans to issue can be used at affiliated stores in the city using the dedicated app "Tochitsuka." By linking the app with the My Number card, users' identities will be verified. The aim is to achieve highly secure transactions.

If payments are made with the stable coins that will be issued within the year, the store's payment fees will be 0.5%, the lowest internationally. For example, with the current cashless payment system, stores incur a payment fee of about 3%, which is a major barrier to business and a barrier to entry for cashless transactions.

By keeping payment fees to a minimum, the aim is to expand the number of stores that introduce cashless payments. A representative from Hokuriku Bank said, "We would like to expand our efforts in Suzu City to other cities and towns in the spring of 2024."

The stablecoin Tochika, which is scheduled to be introduced this winter, will be charged directly by users. The blockchain used by Tochika is a private chain based on Ethereum.

Reference:Announcement
Image: Quoted from the website