Province of South Korea to introduce Cryptocurrencies and ID-based Blockchain for employees
According to local newspapers in South Korea, the eastern province of Gyeongsangbuk-do is in line to issue its cryptocurrency, open an exchange and push for adoption as a payment system within the province.
In an attempt to replace local coins (gift certificates) in the nine cities, the provincial government of Gyeongsangbuk-do (also called Gyeongbuk) is working on a cryptocurrency that will be used in selected sections of the province.
The government will establish exchanges to exchange the cryptocurrency issued. Merchants and retailers will be able to accept the currency via smartphone QR codes .
The success of the gift certificate Gyeongbuk
Before the idea of integrating the cryptocurrencies, the province of Gyeongbuk has gift certificates that can be used as normal currency within the province. Gift certificates act as local currency within the province in an attempt to revive the economy, reinvest in the province and prevent the escape of local capital.
According to Naver, the nine cities of Gyeongbuk province each offer their own gift certificates with an additional 60 municipalities using all over South Korea. The practice has seen the various cities prosper economically as a huge part of the population uses these certificates gift.
Gyeongbuk Gift Certificates
According to one of the local newspapers, the Kyongbuk newspaper, Pohang is one of the largest cities in Gyeongbuk issuing gift certificates in the province. The city with a population of just over half a million has registered the highest value of gift certificates offered in South Korea with a total of 100 billion KRW $ 90 million Pohang gift certificates (~ $ 90 million USD) sold by the government from the beginning of January 2017.
However, with blockchain technology that offers more security and transparency combined with the increased rates of crypto adoption in the country, the municipality is trying to introduce cryptocurrencies to replace gift certificates.
Gyeongsangbuk Province introduces "Gyeongbuk coin" Replacing gift certificates
The provisional name offered for cryptocurrency is the native currency " Gyeongbuk ".
Joongang Ilbo, the Department for Scientific and Technological Policies of the province announced on August 27 th that a total of 10 banks, mobile communications companies, a university research team and officials Government of Gyeongsangbuk-do will meet for the first time for the issue of cryptocurrency. The first issue of the KRW 100 billion will be offered in the first half of 2019 and exchanges will be available for trade in the currency with payments allowed at various points of sale using a QR code on your smartphone.
Korea has been at the forefront of accepting the use of cryptocurrencies and has been ranked as one of the most friendly countries towards blockchain technology. This Gyeongbuk government directive to replace gift certificates with cryptocurrencies will improve efficiency in money transfer, speed, lower taxes and will offer a transparent platform for the transaction.
"There are still many problems to solve … [such as] by notifying traders how they can use coins [the] by creating separate programs and issuing [the] coins (cryptocurrencies)." – Chung Sung -hyun, head of the department of scientific and technological politics of the province
Introduction of Blockchain Based IDs: Benchmark of the officers of South Korea in Zug, Switzerland
Officials of Gyeongsangbuk-do visited the canton of Zug in Switzerland to evaluate how to integrate blockchain technologies and increase the use of cryptocurrencies across the province. The Swiss city is known as a cryptocurrency startup hub with many companies such as Xapo, Spaceshift and the foundation base of the Ethereum Foundation in the canton.
A total of 10 officials, including external experts from the province of Gyeongsangbuk-do met with a number of local government officials and entrepreneurs to discuss and learn about processes involving cryptographic integration. The meetings were productive as an official of the South Korean delegation spoke with Sedaily about the idea of introducing blockchain identity cards to the 5000 provincial government officials similar to IDs based on the blockchain of employees in Zug.