South Korean Province to Launch its Own Blockchain-Based Digital Currency
The government of a province in South Korea has decided to introduce its own blockchain-based digital currency that will replace a state loyalty scheme, a local media outlet reported earlier this week.
The government in the South Korean province of Gyeongsangbuk-do will work with blockchain startup Orbs for creating Gyeongbuk Coin, which will be introduced to consumers in lieu of “Hometown Love Gift Cards”.
The province includes South Korea’s fourth largest city, Daegu, with the digital coin set to see merchant acceptance across the province.
Sunghyun Chung, head of the science and technology police dept. of the province, said that there are still many issues that need to be solved by telling merchants about the way they use Gyeongbuk Coin, issuing coins, and creating special programs. He added:
“Cryptocurrencies, however, are a core technology to be accepted.”
South Korean policymakers are eyeing wider integration of cryptos nationwide. The current debate in parliament, focuses on, among several other topics, legalizing initial coin offerings and creating a “Blockchain Island”.
A team of officials had earlier visited Crypto Valley in Switzerland to gain more insight into the deployment of blockchain technology. A local official said:
“I think we can utilize the information we borrowed from Zug City to make blockchain-based Gyeongbuk provincial government ID cards for employees,”
According to the report, the government of Gyeongsangbuk-do aims to release $90 million (100 billion won) worth of Gyeongbuk Coin every year.