Amid the coronavirus pandemic, the University of Aizu in Japan has embraced crypto payment as an alternative to making cashless transactions. The initiative is being powered by a newly developed regional digital currency formed through a partnership between the University and a local finance startup called Soramitsu Co. Students can pay for items using the crypto in the school’s premises.
The University of Aizu begins crypto payment with its native crypto
Known as Byacco, the digital currency is a stablecoin backed by the nation’s legal currency, according to the report on Tuesday. Students and professors can use the cryptocurrency to pay for services rendered in the cafeteria and other places on the campus. They can also choose to send and receive money amongst themselves. However, the Byacco-powered crypto payment is only usable on campus.
Nonetheless, the startup behind the company might extend the crypto payment to include other areas. Soramitsu officials noted in the report that local financial institutions and municipal governments have been inquiring on how they can introduce the digital currency. Soramitsu confirmed the possibility, saying that Byacco can mutually operate with other regional digital currencies based on blockchain.
Japan sees its first blockchain-based regional cryptocurrency
The president of Soramitsu, Kazumasa Miyazawa, explained:
“It is useful to accelerate the liquidity of money and reduce social costs. We would like to expand it to other areas and promote wider cooperation.”
According to the report, the development today marks the first time a regional cryptocurrency will be operated in the country on a full-scale basis using blockchain technology. Students and professors can readily use funds deposited on the Byacco app as Japanese Yen. So, unlike some other conventional cashless payments, stores who accept payment from the students can use it right away.