Gyeonggi Korea issues Stablecoin to revive the economy

Gyeonggi Province of Korea issues Stablecoin to revive the economy in recession because of the Covid-19 epidemic

After China, South Korea is one of the first countries to have an outbreak of Covid-19. Now, when the situation has eased, the government of this country has begun to find ways to deal with the economic consequences of this pandemic.

There is an opinion that instead of mass printing money, South Korea can find a solution based on Blockchain, namely issuing Stablecoins. Note that a Stablecoin is a virtual currency that is tied to a real asset and has the ability to hold a stable price, while a token is a crypto-currency that operates on another virtual currency.

Gyeonggi Province with a population of 13.53 million people surrounds Seoul and is also the most populous region in Korea. According to Asia Times, the provincial government decided to combine and expand its 3 major Stablecoin projects by giving all residents of the province a virtual money package worth 100,000 won/person

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Stablecoin Relief

Currently, the three largest cities of the province, Gimpo, Seongnam and Siheung, are implementing separate Stablecoin projects. KT Telecommunications Group cooperates with Gimpo to issue Gimpopay tokens, while Seongnam and Siheung share a network jointly developed by KOMSCO Mining and Printing Corporation and LG CNS company.

In South Korea, government-issued stablecoins are growing in popularity. Many bitcoin-based projects in Gyeonggi are well received by the people.

According to the above article, Gyeonggi plans to “cover” Stablecoins in the whole province and expand the network to smaller investors.

Maybe the relief package will reach residents as soon as April, but the time to convert to cash will only be 3 months, so people should spend tokens quickly.

The article also states that other regions will follow suit and Seoul can follow with its prime xbt – Zero Pay.