In a first for Japan, Hokkoku Bank launches 'Tochika' - a pioneering stablecoin backed by bank deposits, paving the way for secure crypto adoption.
Hokkoku Bank, a regional institution in Japan's Ishikawa Prefecture, has made history by launching "Tochika" – the nation's first-ever stablecoin backed by bank deposits. This groundbreaking initiative comes on the heels of regulatory changes permitting three types of stablecoins, including bank-backed varieties.
Tochika's genesis can be traced back to Hokkoku's successful partnership with Suzu City last year, which saw the launch of the "Tochituka" app. This pioneering platform enabled residents to earn and spend "Tochipo" points at participating local merchants, a concept that has now evolved into a full-fledged digital currency secured by the bank's reserves.
Despite Japan's reputation as a cash-centric society, Hokkoku recognized the growing demand for seamless digital payment solutions, offering merchants an attractive rate of just 0.5% for cashless transactions via the Tochituka app. This move seeks to entice retail businesses deterred by the traditionally high costs associated with such services.
While stablecoin initiatives have been undertaken by banks worldwide, Hokkoku's approach stands out due to its focus on retail customers and the unique backing by actual bank deposits. This distinction sets Tochika apart from conventional stablecoin reserves and positions it as a pioneering model for the industry.
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