KT Corporation, a leading telecommunications company in South Korea, has been saddled with the task of developing a cryptocurrency. The proposed asset will be used only by merchants in the South Korean city of Gimpo, and subsequently, other local governments will be incorporated, according to a media report on February 15.
K-Token to be Launched in April
Based on reports, KT Corporation will see to the development of a local cryptocurrency called “K-token”. Eleven billion won (around $9.7 million) of the proposed virtual asset will be issued every year and plans have been made to use it to establish social and developmental services. Also, K-token’s pilot phase will take place in March, and the coin will be launched in April.
In the same vein, the local cryptocurrency will only be used by merchants in Gimpo, and therefore, it cannot be used by large side-marts or entertainment establishments. With time, other local governments will be incorporated depending on whether their leaders have decided to process payments with it. In either case, users of the token will be able to convert it to fiat or transfer it directly to their bank accounts without any fees charged.
The report also stated that:
The K-token can be issued by freely setting conditions such as the area, company, authority, and period of use.
Local Cryptocurrency to Revitalize and Stabilize the Economy
According to Yeong-il Seo, head of the blockchain centre and senior vice president at KT, the introduction of the proposed cryptocurrency will contribute to revitalizing and stabilizing the region’s economy. The said currency is also believed to bring about difficulties in forging and duplication as is the case of the local currency. Also, illegal cashing problems will be eliminated.
Unlike Asian countries like India and China, Thailand and South Korea have taken steps to adopt cryptocurrency as well as the blockchain. India, for instance, wants to have nothing to do with virtual currencies given that banks are closing customers’ accounts for trading cryptocurrencies. China also banned ICOs in 2017, and the trades of cryptocurrency in the country has dropped drastically.
South Korean Government Regulates Cryptocurrency Exchanges
BTCNN on January 14 informed that the South Korean government probed 38 cryptocurrency exchanges. Among them, only seven had met the requirements of the government and 21, on the other hand, did not meet the safety standards set by the country’s regulator. The government was quick to note that this makes them susceptible to attack.