A Local Government Initiative Becomes an Internet Sensation

On January 13, 2026, a routine announcement from Ogaki City in Gifu Prefecture caught the attention of the Japanese internet. The city's plan to hand a digital regional currency called "Gaki Pay" to every resident started trending, not for its economics, but for its name.

The word "gaki" in Japanese is colloquially used to mean "brat" or "kid" (derived from a Buddhist term for hungry ghosts), which immediately set social media ablaze with jokes and memes. However, the name actually comes from "Ogaki" (大垣), the city's name itself.

What Is Gaki Pay?

Gaki Pay is a digital regional currency Ogaki City introduced in fiscal 2024. As part of inflation relief funded by the national government's Priority Support Grant, every registered resident, roughly 157,000 people, receives a "Gaki Pay Card" loaded with 7,000 yen in points, about 45 US dollars. The supplementary budget passed an extraordinary session of the city assembly on January 13. Eligibility is based on residency as of February 1, 2026, with no income or age limits and no application required. Cards go out by household from late March 2026.

Key Features

  • QR code-based cashless payment system
  • Usable at approximately 300 participating stores in Ogaki City
  • Available as both a smartphone app and physical card for those without smartphones
  • Credit card (Visa, Mastercard) top-up functionality currently in pilot testing
  • Integration with local store coupons and promotions

The currency has already been used for various municipal programs, including childbirth and childcare support grants and subsidies for energy-efficient appliances. The system runs on GMO's Mobile Gift Certificate Platform, and the city has been trialling company-issued points with Ogaki Kyoritsu Bank.

The Origin of the Name

Despite the humorous associations, the naming follows a consistent branding strategy in Ogaki City. The municipality has embraced the "Gaki" moniker across multiple initiatives, including "GAKI Meshi!" (a local food guide website) and "Gaki-Biz" (a business support center for small and medium enterprises). Gaki Pay simply continues this established local brand identity.

Social Media Reaction and City's Response

The news spread rapidly on X (formerly Twitter) after regional newspaper Gifu Shimbun reported on the initiative. Comments ranged from "This name is so quirky!" to "I understand it comes from the city name, but couldn't they have thought of something else?" Some users even created fan art based on the currency's logo.

Ogaki City officials responded positively to the unexpected attention: "We're grateful for the buzz. Our app download numbers haven't been growing as much as we'd hoped, so if this helps spread awareness and usage, that's a welcome outcome." What started as a straightforward inflation relief measure has inadvertently become a marketing success for the city.

The Rise of Digital Regional Currencies Across Japan

Gaki Pay is part of a growing trend across Japan, where local governments are increasingly adopting digital regional currencies to stimulate local economies, promote cashless payments, and strengthen community ties.

Notable Digital Regional Currencies in Japan

Currency Name Region Notable Features
Sarobobo Coin Takayama, Hida & Shirakawa-go, Gifu Pioneer since 2017; named after local folk doll "sarobobo"
Hachi Pay Shibuya, Tokyo Named after famous dog statue Hachiko; premium points for residents
Seta Pay Setagaya, Tokyo District-exclusive cashless payment
MORIO Pay Morioka, Iwate Integrated local point system
Aqua Coin Kisarazu, Chiba Health app integration rewards walking with points
Yoro Pay Yoro, Gifu Hybrid paper voucher and digital system
UMECA Annaka, Gunma Launched December 2, 2024. Name blends ume (plum), the local speciality, with ka (currency); chosen by resident vote
Kiri Pay Kiryu, Gunma Connected to childbirth support programs

Why Local Governments Are Embracing Digital Currencies

Benefits for Municipalities

  • Significant reduction in printing and distribution costs compared to paper vouchers
  • Real-time data analytics for more effective policy planning
  • Advancement of digital transformation (DX) initiatives
  • Flexibility to quickly adjust programs based on community needs

Benefits for Residents and Businesses

  • Convenient smartphone-based cashless payments
  • Premium point bonuses and special promotions
  • Support for local businesses over national chains
  • Card options ensure elderly and those without smartphones aren't left behind

Economic Impact

  • Keeps money circulating within the local economy
  • Prevents capital outflow to outside retailers
  • Strengthens community bonds and local identity
  • Creates data-driven insights for economic development

What About Your Region?

We'd love to hear from you! Does your country or region have similar local currency systems? What creative approaches have you seen for stimulating local economies? Share your experiences and thoughts in the comments below!

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