Ulaanbaatar, capital of Mongolia, city’s administration has agreed to partner up with a South Korean blockchain company, Terra, with aim to replace the current payment methods.
Terra is a price-stable cryptocurrency (stablecoin) that hopes to power next-generation payment network using blockchain as the driving technology.
For those of us who are new to this sphere, stablecoin is a cryptocurrency designed to minimize the effects of price volatility by pegging it to a fiat currency or similar assets. Stablecoins are likely the way forward for domestic accomodation of cryptocurrencies as regular cryptocurrencies are too volatile to handle.
Mongolia’s financial technology markets have risen up to blockchain’s call. Recently, the country’s first home-grown cryptocurrency, designed for use in Mongolia, was given a go-ahead by the government. Not only this, Mongolia also saw a series of successful IPOs from local startups.
Now, Mongolian government has turned its eyes towards the conventional payment methods. With Terra, the duo aims to replace the cash-based infrastructure of Mongolia by digital payments ensuring transparency and convenience.
The pilot programme is set to launch in Nalaikh City, one of the nine districts of the capital. Consisting of features like peer-to-peer (P2P) payments and mobile payments, the initiative will ensure safe, contactless and instant transfer among users.
Radnaabazar Choijinsambuu, Governor of Nalaikh District expressed his hope and optimism for this next gen. project.
“We believe this pilot programme with Terra will reform how the people of Nalaikh City make everyday payments. It will contribute to the development and enrichment of the nation’s digital payment infrastructure, while creating a new online platform to easily share information and offering great opportunities to connect with our citizens through advanced technology”
This step translates Mongolian government’s efforts for a better Mongolia and has to be lauded on every level.