APPLICATION

South Korea's largest telecommunications company to issue digital currency in Busan

2019/12/20

South Korea's largest telecommunications company, KT, announced that it will launch a local blockchain-based digital currency for Busan, one of the largest cities in the country. The currency is reported to be activated on 12/30.

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According to a report by the local news outlet dongA on December 19, South Korea's largest telecommunications company, KT, has been selected as the operating agent for the local currency, 동백전 (Dongbaekjeon), in Busan. The aim is to stimulate Busan's local economy and alleviate the management burden on small businesses.

The translation of "동백전" is "Dongbaekjeon" in English, representing the famous camellia flowers in Busan.

In February of this year, the Busan government signed a contract with KT to develop digital currency and payment systems for local shops, encouraging the use of blockchain technology. After months of effort, the Busan city government plans to officially launch the digital currency on the 30th.

The digital currency will be compatible with major banks such as Hana Bank and Busan Bank in South Korea, and can be used in any local store with existing credit card readers. However, currently, users cannot use this currency for transactions in large shopping centers or department stores. Nevertheless, it is quite beneficial for small businesses in the country.

Users are expected to receive a 6% reward when using this camellia coin in Busan in a financial card mode. According to an official announcement from Busan, camellia coins worth $260 million will be issued annually. Yoo Yong-gyu, director of KT's Blockchain Business Center, concluded:

With our expertise in operating regional currencies and blockchain security, KT will strive to establish this digital currency and contribute to the growth of Busan's economy.

Rise of Digital Currency

From the birth of blockchain to the present, digital currencies like Busan's camellia coin are gradually being compared to fiat currencies by the public. Some major countries have even expressed support and plans to introduce digital currencies, believing that the value of digital currencies will continue to be explored.

According to a report by the Associated Press, Iranian President Hassan Rouhani recently stated that the Muslim world needs its own cryptocurrency to combat the US economic dominance in international trade and reduce dependence on the US dollar. He mentioned at a summit in Kuala Lumpur, Malaysia on Thursday:

The Muslim world should take measures to break free from the dominance of the dollar and the US financial system.

The Iranian government has been striving to evade US sanctions and even supports expanding the use of cryptocurrencies like Bitcoin.

According to a survey by Gate Trade in September, cryptocurrency has been one of the most popular investments among Iranians. Among the 1,650 Iranian investors surveyed, over a third earned between $500 and $3,000 through mining, while 58% of investors earned income through trading.

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