South Korea province plans to use its own cryptocurrency CriptoNoticias

Gyeongsangbuk Province in South Korea has announced plans to replace its local payment system with a new cryptocurrency called Gyeongbuk Coin, which allows people to make purchases in stores in the ten cities that make up the entity.

According to local media Joongang Daily will be the purpose of this measure replace with a cryptocurrency the gift certificates issued by each community, which are used by the residents as local currency to prevent the flight of money and thus stimulate the economy in the province. In this way, the Gyeongbuk coins can be accepted by local merchants as payment for their goods and services, through the use of QR codes via smartphones.

Initially it is estimated that the authorities spend 100 billion (about 90 million dollars) in Gyeongbuk Coin per year. This innovative idea will facilitate the realization of commercial activities in the area because it will unite the different gift cards issued by each of the cities in a single cryptographic currency.

The Department of Science and Technology Policy of Gyeongsangbuk has announced that representatives from the provincial government, financial institutions, telecommunications companies and a team of researchers from the region will soon meet to agree on the details of this new cryptocurrency. Since, so far, there are many technical specifications that need to be specified In this context, such as: whether it will be a cryptocurrency as such or a token on an existing blockchain (which), whether they will use a private or public blockchain, whether it is available or not, etc.

According to the source, a team of developers will follow a training in this specialty after a recent agreement with an Israeli company on services related to cryptoactive technology. Subsequently, the members of this team are given the opportunity to be part of a "Special Blockchain Committee", in which they will act as advisers in the adoption process of this technology.

Cryptoactive substances and South Korean regulations

Because of the uncontrolled rise of the cryptocurrency market in the Asian nation, the regulatory authorities of South Korea decided to apply strict restrictions. Among them, the total ban on the realization of Initial Offers of Currency (ICO) on its territory, on the grounds that this financing arrangement does not harm the stability of the national economy.

In addition, the South Korean government has decided to allow transactions with cryptocurrencies only to users with bank accounts in their personal name. The measure is currently being followed by exchange platforms such as Upbit, Bithumb, Coinone and Koibit, the four largest in the country, while a total of 96 exchange offices work on illegality.

On the other hand, governments from different places and even countries had previously decided to launch their own crypto-active. Countries such as Iran, Russia, Sweden, Switzerland and Venezuela have started projects to create their own cryptocurrencies, to stimulate their economy.

Featured image from: byswat /

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