The second most important metropolitan of South Korea Busan has decided to launch Blockchain based regional digital currency. This will expand the financial infrastructure of the country. The news was reported by technological news publication of the country ETnews.
The city is a growing hub for blockchain technology and virtual currencies. As per the news, the proposed cryptocurrency will be a virtual version of the fiat currency of the country. It will be pegged in a 1:1 proportion with the fiat currency.
By launching the stablecoin, the county will join the growing bandwagon of the many other cryptos friendly country with a hope to leverage the adoption of virtual currencies. As per the news, the local government has collaborated with BNK bank of Busan to develop the stablecoin. BNK bank is an ancillary of BNK financial unit.
The stable coin project will start from August with the union of the digital finance department of BNK bank and Busan City. They are also planning to launch digital wallet later this year for the local digital currency. The wallet will take care of payment service management.
An anonymous official of Busan has said the project has massive potential and will get necessary regulatory approval as it is not connected to ICO.
Busan has also grabbed the headlines after it secured its position in South Korea’s free zone for blockchain regulation. After a stiff competition with Jiju province, Busan has established itself as a de facto center for blockchain technology. Now the city will provide a fertile testing ground for the Blockchain based projects and cryptocurrencies.
The cities like Liverpool, Dubai, and Belfast has already announced about their plans to have local cryptocurrency and Busan is the latest city to join them. The ministry of SME and startups of South Korea has said they will provide extensive support to Busan for the development of Blockchain based currency.
The city has also signed MoU with Hyundai Pay company to promote the blockchain technology. The South Korean government is also planning to invest $3.5 million for the development of Blockchain built a virtual power plant for the Busan city.