Toyota Systems is exploring digital currencies and blockchain technology in a new pilot project. The company, an IT subsidiary of the Toyota Motor Corporation, has partnered with a local digital currency exchange on the pilot which will see the participation of its 2,500 staff members.
In its press release, the company revealed that it had partnered with Decurret, a local digital currency exchange on the project. Decurret will provide a white-labeled digital currency that Toyota will brand and use to pay its staff. The payments are for welfare benefits, with the employees able to exchange the branded digital currency for welfare points. They can also exchange the token for gifts from a catalog the company created explicitly for the trial.
Toyota stressed that the digital currency will not be exchangeable for the Japanese yen or any other fiat currency.
The company is seeking to test the scalability of a digital payments system to serve a significant number of people. If the pilot turns out a success, the company will seek to implement the branded digital currency along its extensive supply chain.
This is not the first time that Toyota, the world’s tenth-largest company, has ventured into blockchain technology. In March 2020, it launched the Toyota Blockchain Lab to integrate the technology into its global supply chain, financial systems and verification processes.
As CoinGeek reported, Toyota is looking to use blockchain to allow its customers to connect more openly under security and safety. Through its blockchain lab, the company has been conducting trials for close to two years now. One of its main areas of focus has been identity verification, a sector that blockchain is revolutionizing globally.
Toyota also intends to use the blockchain platform to improve efficiency and traceability of its supply chain.
On its part, Decurret is a well-funded startup that has raised over $50 million in capital. The exchange has reportedly launched branded digital currencies for Japanese insurer Daido Life and power company Kansai Electric Power. It has also been involved in several digital currency studies in Japan, working with the Bank of Japan, the Ministry of Finance and giants such as MUFG and NTT Data.