Numerous governments blame the creation of their state-supported cryptocurrency. Starting such a venture is much easier said than done. A new cryptocurrency will be introduced in Gyeongsangbuk-do province in South Korea. Their Gyeongbuk currency replaces the existing gift card system.
Modernizing local payment systems
It is not uncommon for cities or provinces to offer their own payment system to increase the local economy. In many cases, it uses a different means of value exchange. The South Korean province of Gyeongsangbuk-do achieves this by using gift cards. Known as Hometown Gift Card, this tool has been used by traders across the province. It is this system that will be replaced entirely by this new cryptocurrency in the near future.
Replacing an exchange of means of exchange of value poses logistical problems. An exchange will be built to incorporate the new cryptocurrency. This platform allows local residents to buy the currency with the Korean won. A total value of $ 100 million of Gyeongbuk coins will be issued each year. That amount is on par with the value put into circulation through the current gift card system.
This renewal comes after the local benchmarks have made a trip to Zug. The "crypto hub" of Switzerland has shown a strong tendency to accept cryptocurrencies and to incorporate blockchain technology. Thanks to a fruitful discussion, the concept of this new cryptocurrency will become a reality. It also seems that the officials contemplate the creation of a system of identification of the provincial government based on the blockchain.
Cryptocurrency remains an interesting option
Any country or province can benefit from modern payment solutions. In this day and age, there are numerous solutions to simplify existing systems. Looking beyond traditional offers remains a risk, but can also offer many advantages. Gyeongsangbuk officials admit that the key challenges remain. This includes notifying merchants, creating new loyalty programs and issuing coins.
Despite the potential obstacles, the concept of cryptocurrency remains rather tempting. Creating a new form of value is always a challenge. However, cryptocurrencies offer a unified approach and are based on blockchain technology. Given the appeal of the blockchain, it is an option that is worth exploring on a small scale. This does not automatically mean that this new cryptocurrency will automatically become a success.
Gyeongbuk's currency will be a very intriguing social experiment. The region is home to the fourth city of South Korea, known as Daegu. Moreover, this new currency deals with the "problem" of having nine different cities issuing their own gift cards. A unified approach seems to be in order, and Gyeongbuk Coin could be the right way to do it.
What do you think of a region that emits its own cryptocurrency? Let us know in the comments below .
Images courtesy of Shutterstock.