Bitcoin, Crypto currency, Blockchain

South Korea: A state relies on the Blockchain

5d66de56ffcbda9fd76e25a98ae764b8 - South Korea: A state relies on the Blockchain


The South Korean government so far, no common denominator. First, it prohibits its officials to the trade and possession of crypto-currencies. Later she says ICOs in their own country, want to the investors, but not to punish. Now the government wants to invest big in the research of Blockchain projects.

The Ministry of Information and communication to strengthen the Initiative of “Blockchain Technology Development Strategy” for the developments and competitiveness of the private sector. In the next five years, the Ministry expects a rapid growth of Blockchain applications. The don’t want to miss out on the government. You want to invest 230 billion Won (about 180 million Euro) in the development and dissemination to strengthen its position in South Korea. The government wants to understand the technology even better, and on the other the private sector incentives to develop more. The stated objective is that this technology is about 10,000 people, not to teach, the plug in so far so deep in the matter. The South Korean government expects up to 100 new technology companies by the year 2020.

South Korea is promoting the Blockchain Research Center with the equivalent of over half a Million Euro. Regular competitions to appeal to young people, to develop creative solutions, and this on the Blockchain. Moreover, the lawyers and academics to understand the state of the Blockchain and crypto-currencies better, so that the government may adopt necessary laws. For many companies, a specific legal framework is missing so far, as in many other countries also. In politics and state government, there is a lack, however, is usually to expert knowledge. The South Koreans want to change this quickly.

The project is reducing the social costs for the population by the elimination of inefficient or unnecessary processes, explained in the Ministry. So the processing is reduced in the future time of the authorities ‘ decisions significantly. Of the saved waiting time for assessments both citizens and businesses benefit.

Pattern projects on the Blockchain

The Blockchain technology is in the world, in particular in two sectors. Logistics and financial companies rely heavily on new technology. The many individual transactions and transport routes are ideal for recording on the Blockchain. The South Korea sets American state on Blockchain applications for its six-pattern projects. One of them is also the logistics in the country. In addition, real estate will move on the Blockchain faster and cheaper the owner. The buyer and the seller can sign the documents digitally and your notary and tax Advisor. In the case of elections, the technology is designed to ensure a quick and transparent counting. The Blockchain is also to ensure the food quality of meat products. To this end, each step of the production, the transportation will be documented up for sale on the Blockchain. Consumers get a transparent Overview and to be able to assess the quality of the meat better.

In addition, the project is linked with the used car market: Who has ever bought a used car from a total stranger, aware of the predicament: Is manipulated by the technology? It is an accident car? How is the driving style of the seller? The buyer is not willing to pay the real price, because he knows the actual quality – a classic example of asymmetric information. The seller may insure the potential buyer to believe that he has treated the car with care. A Blockchain could capture all of the values over the life of the car, and so undoubtedly, in the case of a purchase to demonstrate.

South Korea aims to be cashless

The South Korean Central Bank sets for your project “cash-less population” is also strong on the Blockchain. Up to the year 2020, coins and banknotes mainly from the economy to his cycle disappeared – an ambitious goal. A Cryptocurrency, or at least a combination of Fiat and crypto-currency would be a good way to get to your destination faster. It is important, first of all, the population about the new technologies, educate and take you to any concerns.

As far as all of this sounds like the classic “Blockchain instead of crypto”story. The government is considering, meanwhile, but also to relax the least very strict regulation. South Korea is a relatively small country that boasts a fast-paced and high technological development. The lived openness to technological innovations, Despite the government last made frequently in the headlines Prohibited of ICOs and restrictions in the trade of crypto-currencies. In the last few days, the negative reporting about the 30-million-US-Dollar theft at the South Korean stock exchange Bithumb. After all, the victims should be compensated from an internal Fund of the company.

The last part of the governmental Initiative “Blockchain Technology Development Strategy of” growing the positive messages from South Korea. The many technology Startups in the Region offers. They hope to have a uniform legislation and regulation in South Korea.

Leave a Comment