“Digital Local Currencies” are scaling rapidly across municipalities and shopping streets in Japan. Featuring unique names and benefits customized to each region, they are powerful tools for regional development. We explore the basics of local currencies and profile success cases.
How Digital Local Currencies Work
A digital local currency is a payment system restricted to a specific municipality or business district. Users typically download a dedicated smartphone app and load funds to spend at registered merchants.
- Main Goal: Keep money circulating within the community to stimulate local production and consumption.
Unique Regional Payments in Japan
- Sarubobo Coin (Hida Region, Gifu): A pioneer in local digital currencies, widely adopted by residents and tourists alike.
- Aqua Coin (Kisarazu, Chiba): Developed by a local credit union and the city. Features high merchant density and integrations with regional events.
- Shika Pay (Nara): Deeply rooted in the local community, promoting tourism checkouts.
Benefits for Users
- Premium Points Multiplier: Often loaded with premium bonuses (e.g. 10-30% extra value on top-ups), providing better value than cash.
- Exclusive Merchant Discounts: Participating shops often offer free drinks or price cuts exclusively for local currency checkouts.