South Korea’s province will replace province’s currency with digital currency
According to blockchain media outlets, like Gyeonggi News Communication & Yonhap News Agency, South Korea’s province – Gyeongsangbuk-Do – will replace the province’s currency with digital currency, Gyeongbuk Coin by first half of next year.
The province will create and exchange Gyeongbuk coins for trading. The news outlet shared that the coins can be used for payments and merchants can accept them using QR codes. Although South Korea has approved the trading of digital currency, it seems too early to conclude that digital currency will replace the nation’s currency – Korean Won.
The abstract of the news is as follows:
According to Naver, 60 municipalities nationwide, including nine cities in Gyeongsangbuk-do, currently use gift certificates as local currencies aimed at revitalizing local economies and preventing capital flight.
A province in eastern Korea, Gyeongsangbuk-do, plans to issue digital currency to replace the province currency or voucher, which is called Gyeongbuk, and is expected to issue 100 billion won (~ USD$ 90 million) by the first half of next year. In addition, the province plans to establish an exchange that can buy and sell Gyeongbuk coins.
We gather a few editor’s insights on the developments of digital currency in the province as follow:
1. A voucher was issued in 9 cities of Gyeongsangbuk Province. This vouchers only circulate in specific areas of the city, but it is not a legal tender of the country. It is only a circulation medium of the province.
2. As each province create their own voucher it results in different vouchers being circulated in one country. Although it prevents capital flight, it also causes poor capital circulation
3. As a result, Gyeongsangbuk-do Province has decided to issue new digital currencies to replace the vouchers in each of the above cities, thereby enabling capital to flow throughout the province seamlessly.
4. Summary: Digital currency will not replace the nation’s legal tender – Korean won.
South Korea has opened its door to digital currency trading. However, the route to full utilisation of digital coin in the nation is still long.