South Korea’s Busan Bank (BNK) has rolled out a blockchain technology based digital wallet that will aid back digital voucher facilities. Government organizations and employee welfare departments offer subsidies in the form of vouchers, with voucher issuers providing guidelines regarding the venues where it can be used and validity.
The status of a voucher can be viewed on the blockchain. The digital wallet can be accessed via BNK’s app and a QR code paves way for users to remit payments at pre-determined shops or offer it as gift to any loved ones. As per Yonhap news, a BNK official stated:
“by distributing a new digital currency based on blockchain in the region, we expect to support local merchants and contribute to the efficiency of local government policy budgets and administration.”
The venture is one of the initiatives under the Busan City’s plan to transform into a Regulation Free Blockchain Zone. The government of Korea has declared the City of Busan as a Regulation Free Blockchain Zone in July 2019.
Since then, the City is involved in numerous blockchain ventures. In July 2020, Busan City and the Busan Institute of Industrial Science and Innovation stated that they finished planning for the creation of an automated blockchain.
Back in June, the City rolled out a decentralized identity validation service built by blockchain company Coinplug. The solution intends to offer access to public services through the Busan Blockchain ID App. In August, Coinplug revealed that the app can be employed by consumers to visit unmanned convenience shops, which have become normal in Korea.
Rather than digital vouchers, a number of Korean provinces offer Covid-19 relief funds in the form of local digital currencies. For illustration, the Gyeonggi-do province offers of a Money app that is broadly accepted in several shops but aims to work with retailers whose turnover is less than 1 billion won ($830,000).
The intention is to assist small companies which were affected by the pandemic.
