South Korean City Announces Plans To Launch Local Cryptocurrency

Cryptocurrencies are becoming one of the mainstream and popular forms of transacting and the intentions of Busan to create a cryptocurrency is reflective of their viewed potential. 

A Korean tech news publication, ETnews, reports that Busan, South Korea’s second largest city in terms of population, is considering the launch of a local cryptocurrency. The report states that the city’s leaders are considering building a blockchain based digital currency project which will be executed in collaboration with BNK Busan Bank. BNK Busan Bank is a subsidiary of a local holding company called BNK Financial Group. 

The announcement by the city follows the establishment of South Korea’s blockchain regulation free zone. Busan and its competitor province Jeju were selected as a preferred bidders for the project. South Korea’s Ministry of Small and Medium Businesses (SMEs) and Startups is reported to have said that the government has plans to offer Busan extensive support if the city goes ahead with the plans to develop a blockchain based currency structure or token economy.

The government has also announced plans to back up the above statement by the Ministry. South Korea’s government said that they have plans to provide investment to the tune of $3.5 million to Busan for the creation of a blockchain based virtual power plant. The support of South Korea’s government in the establishment of Busan’s blockchain and cryptocurrency projects will go a long way in spurring the city forward in its intention to become a blockchain leader. 

Busan has already made some small moves in the blockchain industry. The city signed an MOU with blockchain company Hyundai Pay. The MOU purports to promote blockchain technology by contributing to the development of the local ICT industry and fostering mutual growth with related start-up businesses. 

What exactly does the project entail?

The city is reportedly intending to launch a digital currency that will be pegged 1:1 with the local currency as it exists in the BNK Busan Bank account. The local digital currency is being developed to boost the local economy whilst putting the city in a prime position to be a leader in the blockchain industry in South Korea. 

Some of Busan’s plans to ensure that their cryptocurrency project takes off include encouraging multiple industries to take up blockchain technology. The city also plans to offer a basis for cryptos and offer initial coin offerings (ICOs) as a part of that basis. 

The Bottom Line

Blockchain technology is fast becoming a part of our worlds and cities across the world recognize this. Busan has become the latest city to state its intention to become a leader in blockchain through the adoption of a local cryptocurrency and other blockchain projects such as a virtual power plant. If Busan goes through with its plans, it will join a list of cities that have adopted blockchain technology in their business. Needless to say, blockchain technology and cryptocurrencies are a part of the world now and their adoption and use is becoming more prevalent.