Hokkoku Bank has written new history by launching “Tochika,” which is the first stablecoin financed by bank deposits. Being a regional institution of Japan, Hokkoku Bank is proceeding towards the adoption of new Web3 technology with this new stablecoin launch. This sparks new initiatives for bringing about regulatory changes by permitting three more types of stablecoins, including varieties from bank financing.
The origins of Tochika can be traced back to Hokkoku’s prosperous collaboration with Suzu City during the previous year’s “Tochituka” app launch. With the help of local merchants who have contributed to the initiative, locals may now spend and earn “Tochipo,” which is a concept that can be converted into digital currency by obtaining bank reserves.
Japan’s reputation for preserving a cash-based society has led to Hokkoku’s recognition as a leader in improving a smooth digital payment experience by providing its merchants with a competitive 0.5% fee for cashless transactions made using the Tochituka app. It aspires to enter the retail market by lowering the typical high-cost consumption of services. However, global financial institutions have acquired the stablecoin founders. Nonetheless, Hokkoku’s strategy is notable for emphasizing retail consumers and is supported by real bank deposits. Tochika’s position as a developing model for the finance industry is disrupted by this maladjustment, setting it apart from stablecoin’s standard reserves.
This development has sparked concern among cryptocurrency enthusiasts about its possible obstacles and benefits. Following the successful operation of the Tochituka app, it allows consumers to earn and spend Tochipo points, considering the nearby local stores. After this, Hokkoku Bank aspires to launch a person-to-person payment through the app by the end of the year. It has the potential to attract other banking entities from Japan’s Ishikawa Prefecture to the initiative by evolving its regional future. Therefore, it is very prominent to assume that the integration of new Web3 technology can pave the way for digitalization in Japan.
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