Cryptocurrencies are embedding themselves into the global financial system and are becoming more acceptable across the world because they do not have some of the restrictions of fiat currency and also because they are an alternative store of value to traditional investment tools.
This has led to cryptocurrencies being launched by private companies such as Facebook and Kik as well as nations themselves, with Venezuela launching their Petro token in 2018 as a means to combat their hyperinflation crisis and now it seems South Korea will be joining the bandwagon as it was announced on August 7, 2019 that Seoul, the South Korean capital city, will be launching their digital currency in November 2019 as a means to transform the city into a blockchain smart City.
Digital Currency Comes to South Korea
According to the report,t the South Korean city intends to release a native digital currency that will be called the S-coin and the end goal of this is to encourage citizens to take part in governance and also to establish communication and cooperation between the government and the citizens as well as collecting information from them.
Bitcoins will act as a sort of reward system in which citizens receive them for using public services or participating in certain obligations such as paying their taxes and volunteering for public service. This goes to show that digital currencies can be a reliable source of rewards and in this case, can act as an incentive to help the government meet certain goals with its citizens.
The expense will be programmed by the government and determinations will be made on how and where and when they can be spent as well as in what quantities and how frequently they can be used to avoid any abuse of the system. As part of a recent use case, S-coins can be given by parents to their children as rewards as well as aking them redeemable for certain rewards at stores to be spent by children. This is a means to help regulate the behavior of both adults and children and make them more responsible citizens and develop the city.
Seoul is not the only city that has done this within South Korea as Busan, their second-most-populous city, launched their local cryptocurrency which they expect to help revive the local economy as well as promote blockchain development.
It is no surprise that two of their biggest cities are embracing blockchain and cryptocurrency as in July, Moon Jae-in, the South Korean president, stated that blockchain technology is a matter of survival and must be taken seriously by the country.