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- South Korea wants to pilot blockchain tokens that describe the part of the government’s money instead of part of the current system that describes the card.
- The government says the initiative could improve transparency, reduce bureaucracy and reduce fines for small businesses.
South Korea they plan to try based on the blockchain tokens of public money deposits, a move that reflects little to crypto sentiment and a gradual increase in public sector payments.
According to the official Press releaseGovernment departments currently manage the government’s business and related expenses using government-issued credit cards. The system works, but I’m working.
When seniors use the cards late at night or outside of business hours, they often need to monitor, report and account for irregular spending.
The purpose of the pilot is to improve the complex payment system
That is the inefficiency that the government wants to address.
Under the proposed model, savings tokens would allow the use of funds to be built directly into the payment itself. The Ministry said that the authorized periods of use and the permitted areas of use can be established in advance, which will make the activities easier to monitor and, most importantly, easier to explain without layers of documentation later.
The official release pegged blockchain less as a buzzword than as a tool for transparency. Because transactions can be tracked directly, the government believes that the new system can reduce the conflicts that have persisted in the old credit card system.
There is also the cost aspect. The ministry said the free payment system would help reduce fines for small businesses, which is needed if the system is to be widely used for public spending.
Sejong City is expected to be the first test site
The government said it will start appointing the people who will do the work and work with the relevant organizations and businesses to explain how the case will be. Full implementation is currently targeted for the fourth quarter of this year, and Sejong-si, the country’s administrative center, is expected to be at the center of testing.
This gives the pilot a starting point. It’s not a global change yet, and it’s not just based on existing payment methods. But it is another sign that governments are becoming interested in financial instruments that can be reformed while the way of use is narrow, controlled and tied to real operating costs.
