Tokyo’s new stablecoin could be one of the world’s most ambitious yet – after city authorities revealed plans to ensure that 50% of all payments made in the capital are made using the token by 2025.
Per Nikkei, the city is banking on the fact that it already has a large range of infrastructure in place and is looking to roll out the new token in pilot zones possibly as early as January or February next year.
The city says it wants to target overseas travelers during the forthcoming Tokyo Olympics, to be held in the city in summer next year.
Authorities say that they will look to offer stablecoin payouts to companies and citizens who contribute to environmentally friendly activities and programs. Companies and individuals involved in staggered work hours or smart commuting projects could receive payouts, for example, as could stores that cut down on plastic bags.
Japan has recently been waging war on cash. Despite having the world’s third-largest economy, the Japan Times recently reported that “four out of five purchases are still made with cash in Japan” – as recently as last month.
The central government has committed to digitizing 40% of all monetary transactions by 2025, but Tokyo is trying to go a step further with its new stablecoin.
The token, named Tokyo YUA Coin, could be used to replace existing forms of cashless payment in the capital – and may be used on a pilot basis on a number of transport lines.
Meanwhile, as reported, in South Korea, Seoul’s sometimes-confusing two-tiered policy on blockchain and cryptocurrency-related matters has resulted in the exponential growth of a very particular kind of stablecoin – local authority-run ventures, pegged to the Korean won and aimed at boosting small business. Many local authorities claim they have been overwhelmed by the initial response.