The Mitsubishi Research Institute (MRI) and Kintetsu Group, an Osaka-based railway company, have teamed up to issue a local digital currency in Japan’s Mie Prefecture.
Announced on Wednesday by the research institute, the coin will be pegged to the Japanese yen to eliminate the unnecessary fluctuation of the value of cryptocurrencies.
Dubbed Kintetsu Shimakaze Coin, the coin will be first launched as a pilot to test its acceptance and will be available from November 11 to January 31 next year.
Both entities will study the circulation and use of the coin in the popular tourist region of the country, which is known for its beaches and pearl cultivation. Fifteen establishments in total will accept the digital currency, which includes the Shima Spain Village, Miyako Resort Shima Bayside Terrace, Kashikojima Espana Cruise, and the Makonde Art Museum, the announcement detailed.
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While the two entities will cooperate to expand the services, MRI will be responsible for the development and operation management of the blockchain-based platform.
In the making of a perfect ecosystem
This is the fourth such unit created by the two Japanese entities, who have been working on digital coins together for the last two years. They launched the first Kintetsu Harukas Coin Social Experiment in September 2017 to test a payment system using the decentralized technology. The second Kintetsu Harukas Coin Social Experiment was used to test the QR code technology and introduce person-to-person transfers the following year.
In February this year, the companies also tested a local coin around Osaka Uehommachi Station
Though the trial is very focused at this stage, Kintetsu’s plan is to create an ecosystem of digital currency along its rail routes.
To use the stable coin, users need to register through an app called Kintetsu Shimakaze Coin and buy the coin using the app. At the end of the trial, the coins in circulation will be destroyed.