Cryptocurrencies have been expanding to different countries of the world. This time, the second most populous city of South Korea, Busan, has proposed to launch a local cryptocurrency. Busan’s primary motive behind launching a stablecoin is to revive the local economy and secure leading position in the blockchain world.
Authorities at Busan city in collaboration with BNK Busan Bank are looking forward to develop a blockchain based digital currency project. BNK Busan Bank is a local subsidiary of BNK Financial Group that will be helping out Busan to create a stablecoin pegged to the local currency, Korean won. The stablecoin is expected to peg the local currency in 1:1 ratio.
At present, Busan is searching for a contractor and reviewing several companies that have cryptographic billing solutions. From next month onwards, the services of Busan Bank Digital Finance Department will be deployed by the Busan city to build its own blockchain based platform to further develop a local cryptocurrency wallet this year. Regarding this, an official from Busan stated:
Although the final decision of the Ministry of Small and Medium-sized Venture Business planned to be made at the end of this month remains, it is optimistic that it will be possible to designate the last special zone because sensitive issues such as the ICO are not included in the project plan.
Previously, along with Jeju Province, Busan City was finalized as the preferred bidder for South Korea’s blockchain regulation-free zone. Following the selection, Busan will promote blockchain technology among industries by providing deregulation and pilot services regarding blockchain-based industries.
At that time, regarding cryptocurrencies, the ministry of SMEs and Startups gave green signal to Busan for launching a cryptocurrency. The ministry said:
The government will provide extensive support if Busan develops its own blockchain-based currency structure or token economy.
A few months ago, Busan City signed Memorandum of Understanding (MoU) with Hyundai Pay, a blockchain company. The intention behind this development was to promote the growth of the fintech sector by supporting startups and offering jobs in the city. For fulfilling all infrastructure needs, Hyundai Pay even planned to relocate its headquarter to Busan.
In December 2018, it was reported that a $3.5 million budget was allotted for setting up a blockchain-enabled virtual power plant (VPP) in the city of Busan. Again, the motivation behind taking the initiative was to support the energy industry by building a VPP on a blockchain. This shows that Busan has been welcoming the blockchain technology in addition to the cryptocurrencies.
However, the sentiment and awareness of cryptocurrencies in South Korea are surely ahead of time as not many countries have decided to devise a regulatory framework for cryptocurrencies and blockchain. A few months ago, the government officials recognized the flaws with previous crypto regulations and decided to revise them.
During a conference, officials presented their view by stating that it was time to freely allow blockchain to upgrade into a massive industry. The officials stated that strict regulations have protected locals from mishaps and crypto frauds but at the same time hindered the progress of blockchain and cryptocurrencies.
In the past, several organizations have launched crypto projects, for instance, JPM coin by JP Morgan. Once adversaries of bitcoin, the world’s sixth largest bank launched its own blockchain based crypto project. Moreover, the bank also shifted its network to the blockchain platform.
While many have tried their luck with cryptocurrency projects, some of the biggest corporations are looking forward to launch a crypto project. For example, social media giant Facebook is all prepared to participate in the crypto space by launching Libra.
With the inclusion of countries such as France and institutes like Facebook in the crypto space, it is getting mature day by day. Institutional investors have diverted their attention to blockchain and cryptocurrencies and have realized the prospective future they have to offer. Regulations are on their way and so are the crypto projects to accelerate the mass adoption.