South Korean Telecom Giant and City Government Teams Up to Launch Major Digital Currency
KT, the largest telecom company in South Korea, is planning to launch its blockchain-based digital currency in the second biggest city in the country, Busan.
According to news outlet dongA, the currency is called Dongbaek Currency, which means Camellia flower, when directly translated to English, and is set to be launched on Dec. 30.
Yoo Yong-gyu, the Blockchain Business Center Director of KT, said, “With our know-how of operating a regional currency and blockchain security, KT will work towards establishing Dongbaek Currency and contributing to the growth of Busan’s economy.”
A contract was secured between KT and the government of Busan in February to develop the digital currency and payment system for local retailers to encourage the adoption of blockchain technology. Yoo explained, “To operate a regional payment network that facilitates hundreds of millions of dollars in transactions, stability and security of the platform are the most important.”
The digital currency is also compatible with Hana Bank and Busan Bank, along with other major banks. When using the digital currency at local stores, existing credit card readers would be used to process the payment.
With Busan’s request to help small stores and merchants, users cannot transact with blockchain-based currencies at department stores and large malls.
KT and Busan are looking to release $260 million worth of Dongbaek Currency, and users will be provided with 6% cashback for using the digital currency.
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