South Korean Province to Create its Own Crypto

Reading Time: 2 minutes

Usually when governments create a cryptocurrency there tends to be an ulterior motive behind it. While Venezuela and Iran are creating their own cryptocurrencies to circumvent US sanctions, a South Korean province is creating its own coin for a very different reason. The local government in the province of Gyeongsangbuk-do believe that cryptocurrencies should be a legal tender and that all stores should accept them. The local government is teaming up with Orbis – a blockchain start-up – to create the blockchain based cryptocurrency.

A Relatively Simple Process

The region of Gyeongsangbuk-do has a natural advantage to be able to pull this awesome feat off. It already has its own regional gift card program, whereby anyone can buy a gift card and use it in any shop. The local government is proposing that the gift card is scrapped and swapped with a cryptocurrency, which will be called Gyeongbuk Coin. It will simply have to explain to store owners how the coin works and can be changed into Korean won – relatively straightforward you would think. This South Korean province is miles ahead in terms of crypto adoption, perhaps even Malta could learn a thing or two. The crypto-friendly nation hopes to leapfrog electronic payments and go straight from cash acceptance to crypto.

Unfriendly Government Cryptos

The Gyeongbuk Coin appears to be the most honest and friendly cryptocurrency created by a government. Currently, Venezuela is plagued by hyperinflation and the government has created its own cryptocurrency – the Petro. It is allegedly pegged to the value of one Venezuelan barrel of oil, however the white paper proves no method of how this is done. The Petro was created to help the Venezuelan government continue to sell oil despite US sanctions. Over in Iran, a similar event is occurring. The government cannot sell oil due to government sanctions, so the country is developing its own cryptocurrency to become solvent once again.

North Korea Playing Catch-Up

South Korea’s neighbor has decided it is time to enter the blockchain world for good this time around. The hermit kingdom is best known for its WannaCry malware that infected hundreds of NHS computers in the UK and extorted thousands of BTC from individuals. It has also been accused of virtually every attack on South Korean crypto exchanges, including the recent Bithumb attack where $30 million was stolen. However, the kingdom has decided to host its very first international blockchain conference starting in October this year. While North Korea claims it will be well attended by top minds from the blockchain industry, we can’t see many high profile names risking the journey.
South Korea continues to come on leaps and bounds in the crypto and blockchain world. Recently the country released classifications for cryptos, making the industry easier to get into for firms and safer for investors. While it could be a number of months before the Gyeongsangbuk-do region implements its own cryptocurrency, but when it does it will be a spectacular day for the crypto world.