"Wow, Japan is the best, but there are many who wonder about its disadvantages?"
Questions regarding the pros and cons including its utility are increasing after Japan's regional bank Hokkoku succeeded in becoming the first in its country to introduce a stablecoin backed by bank deposits.
The initiative was implemented shortly after the Tochituka application launched last year found success, where it also signed an agreement with the Suzu City government.
Explained, the application allows citizens to earn or spend Tochipo points at selected local stores and existing Hokkoku bank account holders can now use the same application to load their Tochika stablecoins.
Tochika's stablecoin secured by deposits can be used to facilitate spending at participating merchants, so Hokkoku aims to attract retail businesses by offering a merchant rate of 0.5% for cashless transactions using the app.
In addition to planning to introduce person-to-person payments in the application by the end of this year, Hokkoku also not only intends to attract other banks in the Ishikawa region to join its initiative but also expansion to other regions in the future.
Please be informed that the technology behind the innovative platform developed by Digital Platforms is also believed to utilize Hyperledger Iroha which is the creation of Japan's Soramitsu.
While Japan's crypto regulatory landscape has seen recent changes where it passed a new law that allows three types of stablecoins including those backed by banks.
The regulatory support is extended to trust-enabled stablecoins, for example the Progmat Coin MUFG platform that facilitates stablecoin issuance is supported by various trust banks and it should be noted that there is a deposit token project called DCJPY that may be launched in the current quarter.
