Token-based Tourist Pass for a New User Experience with DCJPY Payment

This article outlines a technological verification conducted in March 2024, involving a token-based tourist pass using the digital currency “DCJPY”. The verification was conducted by members of the Digital Currency Forum’s Regional Currency Subcommittee, including Panasonic, SocioFuture, au Financial, TIS, and Decurret DCP.

The verification focused on implementing a tourist pass using tokens, which allows users to ride trains and buses within a certain area at a fixed price. The verification also assessed the automation of complex administrative tasks using DCJPY’s smart contracts, such as:

• Settlement with transportation providers and stores based on usage
• Point refunds for unused portions of the pass
• Referral rewards

Background and Overview

Tourist passes are widely used for travel and sightseeing, offering fixed-price access to transportation, facilities, shops, and restaurants within a specified area. However, challenges exist for both providers (local governments and businesses) and users.

Provider Challenges:

• Difficulty in accurately distributing revenue to transportation providers and stores, as well as timely settlement.
• Complex administrative processes due to diverse product offerings.

User Challenges:

• Difficult to understand the value proposition of the pass (e.g., how much they need to use it to benefit from the fixed price compared to individual purchases).

Verification Process and Outcomes:

To address these challenges, the verification implemented a system where the logic for allocating purchase costs, calculating unused amounts and point refunds, and assigning referral rewards was programmed into DCJPY smart contracts. These functions are automatically executed when specific conditions are met.

The verification demonstrated the following potential benefits:

Provider Benefits:

• Automatic distribution of pass purchase revenue to transportation providers and stores based on usage, enabling immediate settlement and reducing administrative burdens.

User Benefits:

• Automatic point refunds for unused portions of the pass, allowing users to redeem these points for souvenirs or other purchases.

Additionally, the verification highlighted the immutability and transparency of blockchain technology. Data on program content and processing results is recorded on the blockchain, making it tamper-proof and accessible to all stakeholders participating in the blockchain.

Role of Participating Companies

• Panasonic Holdings: Developed smart contracts on the DCJPY network.
• SocioFuture, au Financial Holdings: Provided expertise in defining verification scenarios.
• TIS, Decurret DCP: Managed and facilitated the verification process (including planning and scenario consolidation).
• West Japan Railway Company: Provided insights for scenario development.

Future Developments

DCJPY can facilitate the integration of business and financial services by synchronizing transactions, contract execution, and financial settlements, leading to significant economic and social transformation.

This verification demonstrated the technical feasibility of automating and streamlining core functionalities related to tourist passes using smart contracts on the DCJPY network. It also identified potential challenges for implementing tourist passes as a service in the real world, both within and beyond the scope of this verification.

The Regional Currency Subcommittee will continue to explore these challenges and consider the following initiatives:

• Linking tourist passes with digital IDs for secure user authentication: Implementing differentiated usage conditions for tourists and local residents to create more appealing products.
• Automatic referral reward distribution: Expanding the user base of tourist passes by rewarding users for referring them to others.
• Generating and managing tourist passes as NFTs: Allowing users to receive rewards based on transportation and store usage or to collect unique memories as digital assets.

About the Digital Currency Forum Regional Currency Subcommittee

This subcommittee aims to develop standardized specifications for regional currencies, enabling the full utilization of programmable money functions to revitalize regional economies. While focusing on the regional context, the subcommittee will consider a wide range of use cases (e.g., retail, MaaS, insurance), and coordinate information sharing with other subcommittees.

About the Digital Currency “DCJPY”

DCJPY is positioned as “deposits” issued by private banks, comprising two layers:

• Financial Zone: Handles basic fund transfers.
• Business Zone: Enables the creation and execution of diverse programs based on user needs.

The Business Zone facilitates functionalities such as:

• Recording information (“who, when, where, what”)
• Programming conditions for financial zone transfers (e.g., energy coins with environmental value, limited-use grants).

This structure promotes wide-ranging interoperability and enables DCJPY to cater to various business needs, facilitating seamless integration of money flows with goods, digital assets, and automated transactions.

Verification Scenario Details

Scenario 1: Pass usage below the fixed amount, with point refund for unused portion used for souvenir purchase.

1. User purchases a tourist pass by paying the fixed amount to the pass provider.
2. User uses the pass to ride transportation multiple times.
3. User does not utilize the pass to its full value and ends usage. The difference between the pass purchase price and the total usage amount is refunded to the user as points.
4. Transportation providers (multiple) receive their respective share of the pass purchase price based on individual usage.
5. User uses points to purchase souvenirs at a store. The store immediately redeems the points.

Scenario 2: Pass usage exceeding the fixed amount, with referral reward allocated to the referrer.

1. User A purchases a pass on the recommendation of User B, who previously purchased a pass on the recommendation of User C.
2. User A utilizes transportation, stores, and other facilities.
3. User A exhausts the pass value, exceeding the fixed amount.
4. Transportation providers and stores receive their respective share of the pass purchase price based on individual usage.
5. Referral rewards are allocated to User B and C.

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