Seoul to launch cryptocurrency for public services

The South Korean capital Seoul is planning to launch its own cryptocurrency this year, which can be used for all kinds of public services. The so-called S-Coin is developed by the Korean government with help from Samsung and blockchain company ICON. According to the online blog Seoulz at least fourteen services will support the project.

Residents of Seoul can earn S-Coins by doing municipal services, like participating in polls and paying taxes. In turn citizens can use the cryptocurrency for public transportation or at convenience stores across the city.

Among the first organizations and systems to join the project are labor welfare, insurance programs, public transport, and vehicle registration. They government is also looking at healthcare management and online certificate verification for future updates of the blockchain system.

Smart city Seoul

Seoul wants to be one of the first major cities to truly embrace blockchain technology and incorporate cryptocurrency into their daily life. The South Korean government supports these type of projects as they are looking for real use-cases for blockchain technology to revitalize the South Korean economy.

Smart cities aren't only about sensors and observing people. A true smart city requires participation from its citizens in order to really improve the standard of living. Ultimately people will be able to vote online, challenge parking tickets from their own couch, all while staying in full control of their own data. Seoul is even creating a blockchain identity document within its National Blockchain system. This will also make it easier for startups, as the infrastructure for user acquisition is already in place.

Klaytn already making big moves

Samsung and ICON support this project, but at the same time Samsung and another blockchain company also have a big partnership in South Korea. Internet giant Kakao has its own blockchain called Klaytn, which is already working on a variety of smartphones.

Klaytn is also incorporated into Kakao Talk, the most popular messaging app in South Korea. More than 80 percent of the population use the app. Which means 44 million consumers use it every day. Klaytn adds a variety of tools, like social media apps, a ticketing system and games.

The blockchain launched in June 2019. A ‘governance council’ forms the network. Twenty companies are in this council, including LG, Celltrion and Netmarble.