KT is planning to launch an $8 billion worth of community currency for Gimpo City in Gyeonggi. Both KT and KT mhows, the affiliated mobile marketing unit of KT will use blockchain technology for this project. The blockchain-based community currency project may solve the inconvenience caused due to a gift certificate or paper note.
The company established its blockchain research wing almost three years ago. According to the announcement, the company will establish a platform to facilitate the service by the end of 2018. After its establishment, KT Company will then issue community currency in the form of e-currency from an early part of 2019. As per reports, the company is currently working on the same plan with around 25 governments in different towns and cities.
Community currency targeted at people in 30s and 40s
A community currency is accessible only to certain groups and is nothing but an internal coin that helps to give a boost to the financial condition of marginalized populations. Korea issues more than 90 community currencies having a value of 310 billion Won every year. However, most of the communities do not adopt these currencies simply because it is inconvenient to use them.
KT will circulate the blockchain community currencies on pre-paid plastic cards or mobile phone apps via QR codes. The company is issuing the plastic cards especially for people who are in their 30s and 40s and are reluctant or incapable of using mobile devices for making payments. According to KT, the distributed ledger system supported by blockchain technology will ensure transparency and security during transactions.
The system will also assist the local-level governments in tracking and managing these community currencies. It will also stop illegal use of currencies and its conversion into legal tender.
KT to allows store operators convert community currency into Won?
Reports state that KT will be the first community currency based on blockchain technology of Korea to allow store operators to redeem it into Won. The company has teamed up with BC Card to ensure a direct conversion of community currency into Won. After its launch, Gimpo residents can use this currency similar to cash and trade it at local stores for the first six months of 2019.