The South Korean province of Gyeongsangbuk has become the unlikely place for the last cryptographic experiment approved by the government, with the news that it plans to establish its own cryptocurrency.
The move is emblematic of the South Korea's marked shift in the normative position on cryptocurrency, since there was talk of a ban in China to encrypt trading just nine months ago.
As reported in the Joongang Daily, the new cryptocurrency, called Gyeongbuk Coin is intended to replace gift cards at merchants across the province, which includes the fourth city of South Korea, Daegu. The existing local payment system will be replaced in favor of the new currency, which will be available for purchase through an exchange.
The province intends to issue each year 100 billion won (about $ 100 million) of Gyeongbuk coins, which exactly matches that of the previous provincial payment system known as "Hometown Love Gift Cards".
The plan is intended for a team of developers and benchmarkers to create an exchange for residents of Gyeongbuk-do and the surrounding areas to buy the new currency they won. Local businessmen will start accepting the Gyeongbuk currency in exchange for goods and services.
Giving his thoughts on the new cryptocurrency, Sunghyun Chung, head of Gyeongsangbuk-do's department of scientific and technological policy, said:
"There are still many problems to be solved by notifying traders the way in which they use coins, creating separate programs and issuing coins.The cryptocurrencies, however, are a fundamental technology to accept. "
The Example of Zug
A benchmarker team from Gyeongbuk recently visited the famous city of Zug, famous throughout Switzerland, often known as "Crypto Valley" in international blockchain circles.
Zug is sometimes called the startup blockchain, which houses some 170 such startups, including the Ethereum Foundation, in a highly liberalized low-tax environment to encourage encrypted innovation at a level that most part of other cities can only dream of today.
Residents can pay public service taxes in Zug using crypto and they also have access to protected digital identity cards using blockchain technology. Loans to school libraries are also run on a chain of blocks in the European crypt capital.
Giving an example of innovations worthy of borrowing from Zug, a member of the Gyeongsangbuk benchmark group said:
"I think we can use the information we borrowed from Zug City to create cards from. identity of the Gyeongbuk provincial government based on blockchain for 5,000 employees. "
In pursuing the new framework, startup blockchain Orbs signed an agreement with Gyeongsangbuk-do to provide support for their local cryptocurrency project.  Image of Gyeongbuk Palace from Shutterstock.
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