An eastern South Korean province is ready to replace their local currencies and issue its own cryptocurrency in approx. nine cities. There is also the news about establishing an exchange for the new cryptocurrency.
Users can use this new coin as a means of payment within the province. However, even merchants can adopt them via smartphone QR codes.
According to Joongang Ilbo reports, the South Korean province mainly of Gyeongsangbuk-do reveals that the planning to replace their local currencies with a new cryptocurrency is under process.
The eastern South Korean province also called Gyeongbuk, was trying to substitute city-issued gift certificates with a cryptocurrency. At the moment, nine cities of Gyeongsangbuk-do personally issue their gift certificates. However, these are the local currencies, which users can use in selective areas of the province.
In accordance with the Naver, 60 municipalities’ countrywide counting nine cities in Gyeongsangbuk-do, now are using the gift certificates as local currencies. However, they are aiming to revitalize the local economies and prevent their capital flight.
On August 27, the Science and Technology Policy Department at the province made an announcement:
10 banks, mobile communication companies, a university research team and government officials of Gyeongsangbuk-do will gather for the first time for the issuance of the cryptocurrency.
The report notes that the speculative cryptocurrency name of Gyeongsangbuk-do is Gyeongbuk coin. However, the news also adds that the initial 100 billion won (~$90 million) annual issuance could be achieved in the first quarter of 2019. However, the province is also planning to establish an exchange where users can purchase and sell the new Gyeongbuk coins.
The head of the Science and Technology Policy Department at the province, Chung Sung-Hyun was quoted stating:
There are still many issues to be resolved…[such as] notifying merchants of the way, they can use [the] coins, creating separate programs and issuing [the] coins (cryptocurrencies).
Recently, Gyeongsangbuk-do has sent the benchmarking team to Switzerland at the canton of Zug. The team includes 10 members where some were outside experts, met with several local businesses and government officials.
After completing multiple meetings, Sedaily comments on one of the Gyeongsangbuk-do officials saying,
I think we can utilize the experience gained through benchmarking. We can make the identity cards for 5,000 Gyeongbuk provincial government employees like Zug as blockchain-based digital ID cards.
Image Source: South Korea