The government of South Korea wants to use blockchain technology to reduce the costs of trade by 90 percent in 2021. A digital trading platform will be build that can store contracts, take care of customs and logistics. Finance Minister Hong Nam-ki announced these plans this week.
The platform will utilize blockchain, big data and artificial intelligence in an effort to digitize the entire Korean trade finance system. This system needs to improve the country’s e-commerce exports, while reducing time and costs related to trade finance.
A Digital Trade Blockchain Council will be assembled. The members will include banks, banking associations, trade associations, and the Korea Trade Network (KTNet).
South Korea pro-blockchain anti-privacy
The South Korean government is very active with incorporating blockchain technology. Also Korean businesses see the benefit. One of the countries biggest internet platforms has build a blockchain network for everybody to build on. While Samsung favors cryptocurrencies and blockchain technology as well.
Despite the love for blockchain, there’s less love for privacy. Under pressure of the government, exchanges in South Korea are removing privacy focused coins. For example, OKex and Upbit are among the exchanges that will no longer offer Monero.
Governments adopting blockchain
All around the world there are examples of government using blockchain technology. For example, Turkey wants to register land ownership and academic certificates on the blockchain, while other countries are testing the use blockchain technology to include people in the financial system. In addition San Marino is rewarding ‘green citizens’, while Malta is storing rent contracts on the blockchain.
Blockchain is a great technology to create transparency and validate data. The most famous example of something using blockchain technology, is of course bitcoin. Nowadays many governments are even considering launching their own digital currency. For example China is doing it, but also The Marshall Island, Switzerland and even Germany wants it.
Also published on Medium.