The government of a South Korean province has partnered with Israeli blockchain startup Orbs to create its very own cryptocurrency.
Officials from the eastern coastal province of Gyeongsangbuk-do explain that the blockchain-based digital currency, which will be dubbed the Gyengbuk Coin, will replace a state loyalty scheme called the “Hometown Love Gift Cards”.
Regional acceptance of the new crypto
According to provincial government authorities in Gyeongsangbuk-do, the new crypto coin will be accepted by merchants across the region. The province includes some of the largest cities in the country, such as Daegu.
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“There are still many problems to be solved by notifying merchants of the way they use coins, creating separate programs, and issuing coins,” says Sunghyun Chung, head of the science and technology policy department of Gyeongsangbuk-do.
“Cryptocurrencies, however, are a core technology to be accepted.”
Is this the start of national adoption of crypto?
The news of the provincial cryptocurrency comes as South Korean legislators move closer to adopting rules and regulations that will pave the way for nationwide adoption of cryptocurrency.
Lawmakers are currently focusing their debate on the legalisation of initial coin offerings (ICOs as well as creating a Blockchain Island.
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Provincial officials recently visited Zug, Switzerland’s Crypto Valley, to gather ideas and experiences that would help them gain insight into how to implement blockchain technology in Gyeongsangbuk-do.
“I think we can utilise the information we borrowed from Zug City to make blockchain-based Gyeongbuk provincial government ID cards for employees,” a local official told a national news outlet.
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The government of Gyeongsangbuk-do plans to issue 100 billion won ($90 million) worth of Gyeongbuk Coin each year.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.