A South Korean Province Makes Their Own Crypto

Crypto adoption is something that is still yet to happen. In fact, this can be a measure of a cryptocurrency’s success. However, when you have countries like Iran and Venezuela build their own cryptocurrencies, it definitely tells us about the changing of times. The South Korean province of Gyeongsangbuk is now the latest spot for a government-sanctioned crypto experiment. The province is set to having its own cryptocurrency.

South Korea is among the countries in Asia with a good number of crypto investors. Many experts believe that South Korea’s proximity to North Korea could actually be one of the reasons for its popularity. South Korea is, in fact, a complete opposite of what China is. However, nine months ago, there was a point wherein South Korean regulators thought of implementing this type of ban.

Gyeongbuk Coin

The new digital currency will be called the Gyeongbuk Coin. The main purpose of the coin is to replace gift cards at merchants in the province. Among the area that is going to adopt the digital currency is Daegu which is the fourth largest city in the country. The existing local payment system will be replaced by the Gyeongbuk Coin and can be purchased via a crypto exchange.

The province is looking to issue around $100 million worth of Gyeongbuk Coin annually. This is going to match the previous payment system that was known as ‘Hometown Love Gift Cards’. In addition to this, businesses are looking to accept this cryptocurrency as a means of payment.

The plan by the developers is to have an exchange wherein residents can purchase the digital currency using their won. According to Sunghyun Chung who is the head of the science and technology policy department of Gyeongsakbuk-do, “There are still many problems to be solved by notifying merchants of the way they use coins, creating separate programs, and issuing coins. Cryptocurrencies, however, are a core technology to be accepted”.

Following the Example of Switzerland

The team working on the cryptocurrency recently visited Switzerland’s famous crypto-friendly Zug City. It has been known in the international community as the ‘Crypto Valley’. It has been able to host around 170 startups considering the low tax and deregulated environment that helps crypto innovations to prosper.

Public services fees in this particular city can be done using cryptocurrencies. And also, the digital ID cards used in this part of the world are secured using blockchain technology. And also, school library loans are handled on a blockchain.

According to the Gyeongsangbuk’s team, “I think we can utilize the information we borrowed from Zug City to make blockchain-based Gyeongbuk provincial government ID cards for 5,000 employees”.

Vitalik Buterin mentioned that mass adoption is far more important than having a Bitcoin ETF. This could be better for the long-term growth of the industry. With countries applying cryptocurrencies, are we looking at a bright future for cryptocurrencies?

Currently, Bitcoin has lost so much value ever since its all-time high last December 2017. Considering these developments, there is a chance that we could be seeing more countries in the near future to dig deeper into cryptos.