Nowadays a lot of renowned organizations, even local governments are viewing cryptocurrency as a tonic for the economy. Facebook has announced that it will launch its own currency, Libra. There is a rumour on the market that Amazon is trying to create a new token. Economic giant Russia is planning to develop crypto for its nationals, but the project is still at the conception phase.

Just like Russia, many other governments are viewing digital tokens as a means of controlling the value of a currency at the local level that would be suitable for the local people. Busan, the second-largest city of South Korea, has added to the stream by taking the initiative to create its crypto. According to a report in ETnews, the local government will partner with the BNK Busan Bank to implement the plan with the hope that the new currency might boost the local economy.

Busan already has a crypto-friendly environment

Busan has been one of the several cities trying to implement cryptocurrency more effectively. They have taken some important initiatives to accomplish this, including signing an MOU with Hyundai Pay in February and receiving $3.5 million from the government to create a blockchain-enabled virtual power plant. The facility will be naturally in Busan’s territory, making it an ideal place for the development of the proposed cryptocurrency.

However, the process is not as easy as it sounds. There is no official date as to when people will enjoy their own crypto although the local authority’s movement for the project is inspiring. People may have to wait for months or even years for the token. The crypto plan has been taken with a long-term goal in mind. The expectation is that the development of own stablecoin would directly put the local economy in a one-to-one relationship with the coin.

South Korea’s Ministry of SME and Startups has a direct influence on the project since the beginning of this year. The agency offered extensive support from the national government if the city develops a token economy with cryptocurrency. The news of local cryptocurrency came out in a moment when South Korea is planning to establish a blockchain regulation-free zone. 

Plans for the new crypto

It may be a question of how Busan will operate crypto activity in the city where the central government is quite strict with digital currencies. Declaration of a regulation-free zone for blockchain development will answer the question. The declaration was a move long expected due to crypto liberalization pressure. 

Considering Zug, Switzerland as a model for the regulation-free zone, Busan has lifted eleven regulations to have the project up and running. The local authority is expecting a $25 million investment in the region by 2021. The development will be spread between several Innovation districts, including Munhyeon, Centum and Dongsam.

The reason behind choosing Busan for crypto development may be related to the city’s reputation in trading and finance as well as a centre for innovation. It is also the headquarters of the Korea Exchange. Several organizations in the city have already responded positively to the city’s crypto move.