South Korea: A state relies on the blockchain

in #blockchain4 years ago

The South Korean government has so far found no common denominator. First she forbids her officials the trade and possession of cryptocurrencies. Later, it prohibits ICOs in their own country, but does not want to punish the investors. Now the government wants to invest heavily in the research of blockchain projects.

The Ministry of Information and Communication is strengthening the development and competitiveness of the private sector with the "Blockchain Technology Development Strategy" initiative. Over the next five years, the ministry expects rapid growth in blockchain applications. The government does not want to miss that. It wants to invest 230 billion won (around 180 million euros) in the development and dissemination to strengthen the location of South Korea. The government therefore wants to better understand technology itself and to encourage the private sector to develop more. The stated goal is to teach this technology to around 10,000 people who are not yet deeply involved in the subject matter. The South Korean government expects to have up to 100 new technology companies by 2020.

South Korea promotes the Blockchain Research Center with the equivalent of over half a million euros. Regular competitions are designed to appeal to young people, develop creative solutions and implement them on the blockchain. In addition, lawyers and scientists in the civil service to understand the blockchain and cryptocurrency better so that the government can enact necessary laws. For many companies, as in many other countries, there is still no concrete legal framework. In politics and state government, however, it usually lacks expertise. The South Koreans want to change this quickly.

The project reduces social costs for the population by eliminating inefficient or redundant processes, the ministry explains. In the future, the processing time of official decisions will decrease significantly. Both the citizens and the companies benefit from the saved waiting time for decisions.

Sample projects on the Blockchain

Blockchain technology continues to gain momentum worldwide, especially in two industries. Logistics and financial companies are relying heavily on the new technology. The many individual transactions or transport routes are predestined for detection on the blockchain. The South Korean state is also using blockchain applications for its six pilot projects. One of them should also improve logistics in the country. In addition, real estate on the Blockchain faster and cheaper to change the owner. Buyers and sellers can digitally sign the documents and deliver them to their notary and tax advisor. In elections, the technology should ensure a fast and transparent counting. The blockchain should also ensure the food quality of meat products. Every step of the production, transport and sale is documented on the Blockchain. Consumers thus gain a transparent overview and thus better assess the quality of the meat.

In addition, the project follows the used car market: Anyone who has ever bought a used car from a stranger, knows the predicament: Is the technology manipulated? Is it an accident car? What is the driving style of the seller? The buyer is not willing to pay the true price because he does not know the actual quality - a classic example of asymmetric information. The seller can not credibly assure the potential buyer that he has always treated the car with care. A blockchain could capture all the values ​​over the lifetime of the car, and undoubtedly prove it in a purchase.

South Korea should become cashless

The South Korean central bank is also heavily relying on the blockchain for its "cashless population" project. By the year 2020, coins and banknotes should have largely disappeared from the economic cycle - an ambitious goal. A cryptocurrency or at least a combination of fiat and cryptocurrency would be an effective means of getting to the target faster. To do this, it is important to first educate the population about the new technologies and to take any concerns away from them.

So far, that sounds like the classic "blockchain instead of crypto" story. However, the government is also considering slowing down the recent strict regulation. South Korea is a comparatively small country with a rapid and high level of technological development. Despite its openness to technological innovation, the government has recently made headlines with bans on ICOs and restrictions on the trading of cryptocurrencies. In the last few days followed by the negative coverage of the 30-million-dollar theft on the South Korean Bithumb Exchange. After all, those affected should be compensated from an internal fund of the company.

Not least with the state initiative "Blockchain Technology Development Strategy", so too are the positive news from South Korea. The numerous technology startups in the region are pleased. They hope for a unified legislation and regulation in South Korea

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