Tokyo begins testing SDGs digital currency “Tokyo Your Coin (for office)”

Mitsubishi Research Institute, Inc. (MRI) established ‘Area DX Division’ on January 1 to carry out a test on the promotion of cashless transactions, a business model carried out by Tokyo Metropolis. The experiment is currently active in Otemachi, Marunouchi and Yurakucho district (known as Daimaruyu district), all of which are business districts in Tokyo.

Tokyo Metropolis is promoting cashless transactions by executing ‘Tokyo Your Coin (for office)’, a business model that MRI has now become a trustee of. The purpose of the project is to establish a unique point reward program within Daimaruyu district in order to encourage people to engage in SDGs activities. It will also promote cashless transactions by using the rewarded points. Expected users are office workers in the area and visitors.

The activities that are subject to the point reward program include:

1. Promoting ‘Jisa-biz’ (meaning staggered commuting)
   — workers of participating companies stagger commuting hours, use telework
   — Use of morning cafes to stagger commuting
   — participate in morning/evening activities that would promote staggered commuting
2. Reducing plastic waste
   —shopping without plastic bags at major convenience store chains and marché
   —shopping without cash or plastic bags at drugstores
   —use of tumblers at participating cafes
   —purchasing ‘Eco-ben’, a takeaway food packed in recyclable containers, and returning the container afterwards

Users are rewarded points at the store front by scanning a QR Code.

There are three ways to use the rewarded points. First, they can be used for payments at participating stores during the experiment period. Second, to exchange the points to a different point reward program, such as T-POINT, Ponta and nanaco (all of which has many users in Japan). Third, to donate the points to ‘Eco Musubi’, a fund contributing to SDGs activities in Daimaruyu district. Use of the rewarded points can also be done through QR transactions.

The purpose of this test is to analyze the awareness and behavior of the users before and after the demonstration. MRI is hoping to apply this project to various services in different regions to conciliate economic growth and solve social issues.

The Japanese Government is promoting cashless transactions in Japan. However, the current status of the usage of cashless payment is low compared to other developed countries. According to a data provided by METI (Ministry of Economy, Trade and Industry), the ratio of cashless payment in Japan is 18.4%, compared to 89.1% in Korea, 60.0% in China, and 45% in US (as of 2015). The Japanese Government aims to raise this number to 40% by 2025. Cashless transaction contributes to sales promotion and improving productivity, because transactions are stored as data, available to analyze for shopping trends.

MRI’s experiment not only plays a part in promoting cashless payment, but it attempts to connect economic growth to SDGs. There are still many people in Japan who prefers to use paper money, because of the high reliability it has in the society; high convenience of ATMs; and how it is safe to carry cash in society. However, if using cashless payment contributes to social good, then it may stimulate change in awareness. We can expect more appealing promotions to further create a cashless society in Japan.