[NEWS] Hokuriku Bank launches Japan's first deposit-based stablecoin, "Tochika"

On the 1st, Hokuriku Bank announced that it will begin offering a deposit-type stablecoin called "Tochika." According to the announcement, this will be the first deposit-type stablecoin in Japan that uses blockchain and is backed by deposit funds.

Hokuriku Bank has been offering the digital local currency service "Tochitsuka" in collaboration with Digital Platformer since October last year, and points issued by local governments, "Tochipo," can be used. With this announcement, it is now possible to use Tochika through Tochitsuka.

Tochika accounts can be opened by registering a bank deposit account for charging on the Tochitsuka app. After opening, you can charge from the registered bank deposit account and use it to make payments at Tochitsuka affiliated stores, with 1 Tochika = 1 yen. The fee for affiliated stores is set at a very low 0.5%.

In the future, Hokuriku Bank plans to promote charging through deposit accounts at other financial institutions so that many residents in Ishikawa Prefecture can use it.

In addition, a person-to-person remittance function that allows users to send Tochika to each other will be implemented within 2024. In addition, they stated that they will cooperate in the issuance and introduction of deposit-type stable coins outside Ishikawa Prefecture, and explained that they will realize a highly convenient cashless environment where each other's services can be used in regions across the country.

Differences between Tochika and Tochipo

There are several differences between the Tochika being issued this time and the Tochipo that was released earlier.

First of all, Tochika is a digital money issued by Hokuriku Bank, while Tochipo is a point issued by local governments. Therefore, Tochika can be converted into cash, but Tochipo cannot.

Furthermore, Tochika can be used at Tochitsuka affiliated stores, but Tochipo can only be used at affiliated stores within the local government. However, both require identity verification using a My Number card.

▶ Comparison of Tochika and Tochipo: Quoted from the announcement

The issuance plan for Tochika and Tochipo was announced in April last year. With the revised Payment Services Act coming into force in June last year, many financial institutions are expected to issue stablecoins in 2024.

Tochika, issued by Hokuriku Bank, is a pioneer and may attract even more attention as a model case in the future.

Reference: Announcement
Image: Shutterstock

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