A South Korean Province To Issue Own Cryptocurrency

The use and popularity of Cryptocurrency in South Korea reached a new level after a province in the eastern part of the country announced it will be replacing the local currency with their own virtual currency. Moreover, the region also revealed it will establish an exchange that will be used in the nine cities in the province. A benchmarking team that recently visited the canton of Zug, Switzerland has come up with a proposal to issue blockchain-based ID cards to government employees in the province.

Gyeongsangbuk-Do To Use A Cryptocurrency In Place Of Local Currencies

A South Korean province has announced that will introduce own Cryptocurrency to replace local currencies according to Joongang Ilbo news outlet. For some time, Gyeongsangbuk-do province, simply known as Gyeongbuk has been trying to issue gift certificates with a virtual currency. In the eastern South Korean province, nine cities already issue their own gift certificates that can be accepted in selected places as local currency according to the publication.

The use of local currencies in South Korea is widespread. Naver reports that about 60 municipalities in the country including the nine cities in the eastern province issue gift certificates that are used as currencies. These regions have been using this tactic to prevent capital flight and revitalize their economies.

According to Kyongbuk daily newspaper, Pohang is South Korea’s largest issuer of gift cards. The city has a population of over half a million people and is among the largest urban centers in the eastern province. Between January 2017 and May this year, the city had sold certificates worth about 100 billion won (~US$ 90 million) according to the media house.

The issuance of the new Cryptocurrency will involve several groups in the province. On August 27, the regions Science and Technology Policy Department said that government officials from the region, a university research team, mobile communication firms, and 10 banks will meet to issue the Cryptocurrency according to Joongang Ilbo.

Gyeongsangbuk-Do To Use A Cryptocurrency In Place Of Local Currencies

The New Cryptocurrency To Be Called Gyeongbuk

According to Joongang Ilbo, Gyeongsangbuk-do has already identified Gyeongbuk coin as the name of the new virtual currency. The region’s government projects that by the first half of 2019, the annual issuance will hit 100 billion won (~$90 million).

The region’s government is planning to establish a Crypto exchange that will help the local residents to buy and sell the new coin. According to the news outlet, Gyeongbuk coins will be used for payment. Business can accept the Cryptocurrency the QR codes.

Although the new Cryptocurrency is ready for launch, there is still a long way to go. According to Chun Sung-Hyun, they are some issues they are working on. The head of region’s Science and Technology Policy Department revealed that some of the areas they are working on are the issuing of the Cryptocurrencies, developing a separate program, and informing businesses on the uses of the new currency among others.

A Benchmarking Visit To Switzerland

A few weeks ago, a benchmarking team from Gyeongsangbuk-do was sent to Canton of Zug in Switzerland. The region hosts various Crypto startups like Ethereum Foundation, Xapo, and Shapeshift. The province sent 10 members who met with various local firms and government officials. One senior official from the eastern province said the visit was beneficial as they are already considering issuing a blockchain-based digital ID cards for the 5,000 government employees in the province.