Crypto in Chaos, But Blockchain-powered Pay and Stablecoins Thrive in South Korea


Source: AdobeStock / tanawatpontchour

South Korea’s crypto industry may have taken a hard hit over the weekend, with a slew of exchanges and wallet providers shutting down or suspending business operations: Strict regulatory delay transformed a once industry flourishing into a tiny “oligopoly”. But the story is very different in the world of blockchain-based payments and fiat KRW stablecoins.

The Korean Security Stamping and Printing Company (KOMSCO) is a company that until relatively recently earned its money in cash: the company prints banknotes and minted coins for the treasury.

But in recent years, it has moved away from paper and notes and delved deeper into the rapidly growing world of local stablecoins. Together with the country’s municipal and provincial authorities, KOMSCO has deployed dozens of local stablecoins and blockchain-powered paperless gift certificates.

Many authorities have used these programs to send the equivalent of coronavirus pandemic mitigation stimulus checks to local residents – with the aim of driving people away from monolithic e-commerce platforms and bringing them back to them. local businesses. Seoul has also opted for a “cashless” and “contactless” reader, a factor that has helped KOMSCO expand its range of stablecoin offerings.

Last year, the company posted record profits, launched a hiring campaign, and announced plans to pay its staff a portion of their salaries in stablecoins.

Now the company appears poised to take another step forward in the world of cashless and blockchain-powered payments. According to the Choongchung Times, KOMSCO’s own blockchain-powered gift certificate platform, Chak, rolled out to 37 cities and counties nationwide last year, following its launch in 2019. But by the end of this year, the platform will have rolled out to 70 more cities and counties across South Korea.

A growing number of local authorities are also turning to Chak, which the outlet said was adopted by 270,000 vendors and franchises in the first half of this year. More than 1.1 million people have started using the platform to make payments, and the total cumulative value of gift certificates purchased on Chak so far is around $ 1.7 billion.

But by far the biggest customer of the Chak platform appears to be local governments. Municipal and provincial authorities have paid their officials’ bonuses and other fees using Chak certificates rather than certificates, and have so far spent $ 76.2 million on the platform.

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Learn more:
– South Korea’s crypto industry still reeling from last week’s carnage
– South Korean tax authorities will be granted the right to search the homes of crypto tax evaders

– South Korean ruling party argues over crypto tax
– Politicians want $ 16 billion more from US cryptofolks, but South Korea sees better news

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