The South Korean province of Gyeongsangbuk has turned into an unlikely area for the latest government-approved crypto experiment, with the news that it intends to set up its own cryptocurrency.
This move makes a symbolic impact after South Korea considered putting a China-style ban on crypto trading around nine months back.
As reported by Joongang Daily, the new cryptocurrency, called Gyeongbuk Coin is expected to replace the gift vouchers at vendors everywhere throughout the area, which incorporates South Korea’s fourth-biggest city Daegu. The existing payment system will be replaced in favor of the new coin, which will be available for purchase through an exchange.
The area expects to issue 100 billion won (generally $100 million) worth of Gyeongbuk Coin each year, which precisely matches that of the past provincial payment system, known as ‘Hometown Love Gift Cards’.
The plan is for a group of engineers and benchmarkers to make an exchange for the residents of Gyeongbuk-do and surrounding territories to buy the new coin with their won. Local businessmen will then start to accept Gyeongbuk Coin in exchange for goods and services.
Giving his thoughts on the new cryptocurrency, Sunghyun Chung, head of the science and technology policy department of Gyeongsangbuk-do, stated:
“There are still many problems to be solved by notifying merchants of the way they use coins, creating separate programs, and issuing coins. Cryptocurrencies, however, are a core technology to be accepted.”
Giving an example of technologies worthy of borrowing from Zug, a member of Gyeongsangbuk’s benchmarking group stated:
“I think we can utilize the information we borrowed from Zug City to make blockchain-based Gyeongbuk provincial government ID cards for 5,000 employees.”
In adaptability of the new system, blockchain startup Orbs has signed an agreement with Gyeongsangbuk-do to offer support for their local cryptocurrency project.
For more updates, stay tuned to CoinTopper.com