Park Won Soon, The Mayor of Seoul, has announced that the City will have its first public Cryptocurrency, the S-Coin. The Cryptocurrency is set to be the official unit of value for the Seoul’s Blockchain of public funding program.
As one of the world’s most technologically advanced societies, the South Koreans are likely to be the pacesetters for other governance institutions to follow suit in utilizing the Blockchain technology for capital and public revenue formation.
Another government Cryptocurrency had been launched in Venezuela (Petromoneda) but has since been sanctioned by the US on allegations of massive fraud scheming by the Nicolas Maduro Regime. Unlike the S-Coin, the Petromoneda is hedged against Venezuela’s enormous oil and mineral resources. The blockchain is, however, weakly structured as the oil and mineral resources are mostly wrongly valued owing to the massive depreciation of the Venezuelan Bolivar and the unhealthy macroeconomic environment marred by years of neglect, mismanagement, and dysfunctional institutions.
The S-Coin Effect To Be Felt Across Seoul
The Mayor, further, stated that the city’s prominence in information and telecommunications technology has to be safeguarded on a centralized Blockchain that represents an investment into the future. The safeguarding of the Korean industrial revolution is crucial as it represents the commitment, dedication and, innovativeness of the South Koreans in making a global impact.
The Blockchain technology is to be applied in the government’s bureaucratic administrative processes such as; controlling and running of the City of Seoul public transport system, Capital formation for Youth funds and allowances, provision of welfare programs such as housing the city’s homeless, rehabilitating drug addicts, subsidizing the costs of gas, electricity and water and much more.
Mr. Won Soon, further, indicated that the S-Coin would be used in paying for the wages and salaries of public employees, unemployment benefits for job seekers and funding of public works.
The Information Strategy Plan (ISP)
This program was initiated in November 2017, when the city contracted Samsung to roll out an ambitious masterplan to put in place a public Blockchain ecosystem of the city. The Information Strategy Plan (ISP), as the master plan is referred, is aimed at driving innovation and technology in municipal based operations. The masterplan’s timeline is expected to be complete in April 2018 with the launch of the Seoul Blockchain.
South Korea’s Laws Stand as a Stumbling Block to the Initiative
The Mayor decried that the law governing Cryptocurrencies is mainly inhibitive of Blockchains technology advancements. He appealed to the nation’s lawmakers to set up rules and regulations that promote and encourage innovations in Blockchains to realize the maximum benefits that have been possible in other countries. He believes that with the model created by Samsung for Seoul, the South Korean government can be informed of the benefits of blockchain technology and work together with the local administration to enable the masterplan to takeoff.
What to Expect Going Forward
The success of this program is forecasted to influence other government organizations worldwide to undertake initiatives to not only boost public revenues but enhance the welfare of the underprivileged in the communities.