South Korean telecommunication company, KT has revealed plans to launch a local digital currency.
The South Korean company named its proposed digital currency Dongbaek Currency. Accordingly, the blockchain-powered local currency goes live in the city of Busan on the 30th of this month, the second-largest city in South Korea behind Seoul with a population of about 3.5 million.
The official press release revealed a number of ways to access the currency. This includes a Dongbaek mobile application and two banks, Hana and Busan Banks. The digital currency’s purpose is to strengthen Busan’s local economy while helping small stores and merchants.
Quoting the South Korean news outlet: “Dongbaekjeon, a blockchain-based card-type local currency issued by Busan City. It’s aimed at revitalizing Busan’s local economy and easing the management burden of small business.”
Notably, the press release also revealed that users cannot use the currency at large malls or department stores.
Yoo Yong-gyu, the director of KT Blockchain Business Center spoke about the development. He believes KT holds rich know-how of operating a regional currency and blockchain security. Therefore, he believes it’ll aid KT work toward establishing Dongbaek Currency. And help KT contribute to the growth of Busan’s economy.
Earlier this year, the government of Busan reached an agreement with KT to develop a digital currency. As well as, a digital payment system for local stores. The aim focused on encouraging the use of blockchain technology.
The telecommunication company and Busan now plan to release $260 million worth of Dongbaek Currency. Also, the users get the provision of a six percent cashback for using the digital currency.