South Korea’s Second Largest City Considers Launching Local Cryptocurrency

The second-most populous city in South Korea, Busan, is reportedly considering launching a local cryptocurrency. This crypto would supposedly take the form of a stablecoin pegged to the South Korean won.

Busan, South Korea, plans local cryptocurrency

This news comes from the South Korean technology news outlet ETnews. What’s more, the report supposedly details how the city of Busan would develop the stablecoin together with BNK Busan Bank. 

BNK Busan Bank is a subsidiary of the local major holding company, BNK Financial Group. As such, the city of Busan would have backing from a notable financial player in developing its cryptocurrency.

Specifically, the report describes the crypto as a “blockchain-based digital currency”. Moreover, Busan city authorities are reportedly behind the initiative to develop the cryptocurrency. 

In addition to this, Busan’s crypto project will supposedly be a stablecoin. The coin is said to be pegged to one-to-one to the local currency found in BNK Busan’s bank account. 

Moreover, the reason behind creating the local crypto is supposedly a bid to revitalize the local economy. Nevertheless, another driving reason is that Busan is looking to secure “the leading position in blockchain”.

Is this a bid to further South Korean blockchain innovation?

South Korea has been notorious when it comes to cryptocurrency and blockchain adoption. The country has called for progressive and extensive cryptocurrency regulations. What’s more, South Korea has reportedly even considered blockchain-based voting.

The news of the local Busan crypto comes as South Korea is about to establish a blockchain regulation-free zone. Furthermore, Busan was chosen as the preferred bidder for this zone, along with the South Korean Jeju Province.

As such, Busan will promote blockchain technology and the potential of integrating it into various industries. What’s more, Busan will reportedly provide a fertile testing ground for introducing cryptocurrencies and initial coin offerings. Consequently, it is not hard to see why a local cryptocurrency might make sense. 

Additionally, the South Korean Ministry of Small and Medium Businesses and Startups has previously hinted at broader blockchain adoption.

In fact, the Ministry reportedly stated that the South Korean government intends to provide “extensive support if Busan develops its own blockchain-based currency structure or token economy.”

Moreover, the South Korean government has unveiled plans to invest millions of dollars in order to promote blockchain-based innovation in the major South Korean city. 

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