The second major city of South Korea, Busan, is planning to release a blockchain-based regional cryptocurrency to expand its financial infrastructure, as per the reports.
Busan’s proposed cryptocurrency will be a digital version of the fiat currency pegged 1:1, meaning that one unit of the cryptocurrency will be equal to one unit of fiat currency, as per the reports in an English daily.
In collaboration with BNK Busan Bank, the stable coin will be developed which will be based on a blockchain system. BNK Busan Bank is a subsidiary of local holding company BNK Financial Group. The city of Busan will also have backing from a notable financial player in developing its cryptocurrency.
Busan reportedly will set up a platform with Busan Bank Digital Finance Department, a union that will allow it later this year to launch a ‘local currency exclusive wallet.’
The wallet will take care of payment service management and an operation involving the new cryptocurrency.
An unnamed Busan official said that there are huge chances that the project will get the necessary regulatory approval since it does not in any way related with an Initial Coin Offering (ICO).
“Although the final decision of the Ministry of Small and Medium-sized Venture Business planned to be made at the end of this month remains, [we] are optimistic that it will be possible to designate the last special zone because sensitive issues such as the ICO are not included in the project plan,” the official said.
It would be essential to note at this point that Busan’s recent inroads into blockchain technology come amid the approval of the region to negotiate for a spot as South Korea’s “Free Zone for Blockchain Regulation.”