Digital local currencies are attracting attention as a trump card for local revitalization. More convenient than traditional paper-based local currencies, they are expected to contribute to the development of local economies and communities. In this blog, we will explain the reasons for the growing popularity of digital local currencies, recommended applications, how to utilize them, and their future potential. Let’s explore together the potential of digital local currencies to maximize the appeal of local communities.

1.Reasons for the Growing Popularity of Digital Local Currencies

Here are some of the reasons why digital local currencies are attracting attention and why their popularity is growing.

1.1 Increased Convenience Due to Technological Advancements

Digitalization has enabled local currencies to be linked to electronic money and loyalty point services. This allows for easy payment and recharging using smartphones and dedicated applications. In addition, data can be captured and used for marketing purposes.

1.2 Expectations for economic and community revitalization

Digital local currencies are intended to stimulate economic and community revitalization by being used within a specific region. It is expected that the circulation of money within a region will stimulate the local economy and economic activities of local residents. The introduction of local currencies may also promote the formation of ties and communities among local people.

1.3 Smartphone Penetration and Increase in Cashless Payments

In recent years, cashless payments have become more common as the penetration of smartphones has increased. Digital local currencies have also become more convenient for users, as they can be used on smartphones. In addition, the spread of cashless payments has led to an increase in the number of digital local currency users.

1.4 Support from Local Governments and Enhanced Policies

Another factor behind the popularity of digital local currencies is that local governments are supporting their introduction. Local governments are implementing various measures to utilize digital local currencies with the aim of revitalizing local economies and communities. In addition, since the introduction of digital local currencies is supported by the government, local governments are making progress in their efforts.

These are the main reasons for the growing popularity of digital local currencies. The spread of digital local currencies is expected to promote the development of local economies and communities. 2.

2.how digital local currencies can be used

There are various ways in which digital local currencies can be used to revitalize local economies and communities. Below are some of the ways in which digital local currencies can be utilized.

2.1 Offering preferential treatment and point programs

Digital local currency can be used to receive special offers and preferential treatment at participating merchants in the community. Using the local currency can provide users with benefits such as discounted services and point rewards.

2.2 Donations and support activities for regional contributions

Digital local currency can be used for local social contribution activities and donations. By remitting local currency to a donation recipient, you can provide support to local welfare facilities and community development activities. You can also use local currency to participate in volunteer activities.

2.3 Revitalization of local events and local shopping districts

Digital local currencies can be used to revitalize local events and local shopping districts. Local currency can be used to promote shopping at local events and local shopping areas. Special offers and campaigns using local currency can promote local attractions and encourage people to come to town.

2.4 Matching services for regional exchange

Matching services are provided to promote local exchanges using digital local currencies. Local currency can be used to participate in local events and social gatherings. This can promote interaction among local residents and support the formation of local communities.

Digital local currency can be used in a variety of ways. By using a local currency, you can aim to revitalize the local economy and community. It is important to develop local attractions and economies while incorporating these methods.

3.future potential of digital local currencies

Digital local currencies have various advantages over conventional paper-based local currencies. As a result, they are expected to become increasingly popular in the future.

3.1 Development of Local Economy

Digital local currencies are attracting attention as a means of stimulating economic activity within a region. Digitalization improves the convenience of payment methods and promotes the use of local stores and services. It also contributes to the development of the local economy by encouraging the circulation of currency within the community. As the digital local currency becomes more widespread, it will create benefits for both local businesses and consumers.

3.2 Strengthening Local Communities

Digital local currencies can also contribute to the revitalization of local communities. To encourage participation in local specialties and local events, digital local currency can be used to offer rewards and points. This is expected to increase local residents’ interest in and willingness to participate in the community. Strengthening the local community will lead to a sense of unity among residents and an increase in the attractiveness of the community.

3.3 Attention from outside the region

As digital local currencies become successful and spread within the community, they can also attract attention from outside the community. It will provide an opportunity for people to learn about local specialties and regional attractions, and increase the likelihood that tourists and outside businesses will pay attention to the region. This is expected to further revitalize the region.

3.4 Creation of a sustainable business model

Cooperation from local governments and businesses is essential for the introduction of digital local currencies. To build a sustainable business model, it is necessary to introduce appropriate platforms and applications, provide a variety of uses, and develop measures to attract local demand. Furthermore, it is important to provide unique incentives and benefits to motivate local residents to participate.

The future potential of digital local currencies is to contribute to the revitalization of local economies and communities, as well as to attract attention from outside the region. By developing a variety of measures and building a sustainable business model, digital local currencies are expected to continue to grow.

4.Examples of Digital Local Currency Initiatives by Local Governments

Municipalities are actively introducing digital local currencies with the aim of revitalizing local economies and communities. Below are some examples of digital local currency initiatives by several municipalities.

a. “Furusato Club” in City A

City A has introduced a digital local currency called “Furusato Club” with the aim of revitalizing the community. This currency can be used at participating stores in the city. It can also be exchanged for local specialties and services. Furthermore, it can be used at events and tourist facilities in the city.

In the early stages, the number of merchants was limited and the number of users was low. However, the city conducted an aggressive public relations campaign to increase the number of member stores, and as a result, the number of users increased. This has contributed to the economic revitalization of the region.

b. City B’s “Community Common Point

City B introduced a digital local currency called “local common points” with the aim of revitalizing the local community. This currency can be used to pay for various administrative services and event participation fees in the city.

Through the savings and remittance of this currency, we also aim to promote communication among local residents and deepen community ties. Furthermore, the currency can be used to exchange for local products and services.

c. City C’s “Community Activation Card

City C introduced a digital local currency called the “Community Vitality Card” to promote local economic revitalization. This currency can be used at participating stores in the city and can be exchanged for local specialties and services.

In the initial stages, the number of users was limited due to low awareness among users. However, as a result of the city’s efforts to appeal to merchants and implement user campaigns, the number of users has increased, contributing to the revitalization of the local economy.

These municipalities’ digital local currency initiatives include the following efforts

• Publicity and promotional campaigns: Each municipality conducts aggressive publicity and promotional campaigns. This has increased awareness among local residents and increased the number of digital local currency users.
• Expansion of merchants: In the early stages, the number of merchants was limited and the number of users was low, but local governments actively solicited merchants and increased the number of merchants, leading to an increase in the number of users.
• Exchange for local products and services: Digital local currencies can be used to exchange for local products and services. This contributes to local revitalization and promotion of local economic activities.

These efforts have had a certain effect in revitalizing the local economy and local communities. Furthermore, appropriate public relations and awareness-raising activities can maximize their effects.

Conclusion

Digital local currencies have been attracting attention in recent years against the backdrop of technological advancements, expectations for economic and community revitalization, and the increasing use of smartphones and cashless payments. Various local governments are working to introduce digital local currencies and are achieving results in developing local economies, strengthening communities, and attracting attention from outside the region. While building a sustainable business model remains a challenge, digital local currencies are expected to develop further as an effective means of regional revitalization.

Frequently Asked Questions

What are the reasons for the growing popularity of digital local currencies?

Factors such as increased convenience due to digitalization, expectations for economic and community revitalization, the spread of smartphones and the increase in cashless payments, and enhanced support and policies by local governments are the reasons for the growing popularity of digital local currencies. These factors are expected to develop local economies and communities.

What are some of the recommended applications for digital local currency?

We recommend digital local currency applications such as Kanagawa Pay, Sarubobo Coin, and region PAY. Each has its own unique features, allowing users and local governments to choose the app best suited to their needs. You can enjoy various benefits such as revitalization of the local economy and redemption of points.

How can digital local currencies be utilized?

Digital local currencies can be used to provide preferential treatment and point programs, donations and support activities for regional contributions, activation of local events and local shopping districts, and matching services for regional exchanges. Incorporating these methods can lead to the development of local attractions and economies.

What are the future prospects for digital local currencies?

Digital local currencies are expected to have a variety of benefits, such as developing local economies, strengthening local communities, attracting attention from outside the region, and creating sustainable business models. With the cooperation of local governments and businesses, we expect to see further development of digital local currencies through initiatives such as providing appropriate platforms and incentives.