[2018-08-31] Korean Province to Replace Local Currencies With Crypto

[ruthbabe]

An eastern South Korean province plans to issue its own cryptocurrency to replace the local currencies of its nine cities, according to local media. An exchange will be established for the new crypto. The coins can be used for payments within the province and merchants can accept them using smartphone QR codes. See more for yourself here.

[AltEvangelist]

If this goes through, the "Gyeongbuk Coin" experiment will be a nice primer to see how a real world economy interacts with a fully crypto economy. Will be keeping tabs on this development for sure. Also the fact that they are thinking to start with "...making the identity cards for 5,000 government employees like Zug as blockchain-based digital ID cards." is a major step in the right direction.
Frankly, in the midst of all the news about policy uncertainty, this is such a great thing to read.

[Kemarit]

But I'm somewhat confused,

Gift certificates = Local Currency?

Anyways, this is a good social experiments with a lot of barriers at the beginning. But it looks like everything is setup, everyone's involved is on the same page. They even sent a team to Zug to gain valuable lessons so that they can implement it locally as seamless as possible, but I'm sure there are challenges a long the way. Nevertheless, its a welcoming news so congrats to them for stepping up and adopting crypto.

[darkangel11]

What's the point of issuing a centralized cryptocurrency? It's like a different approach to credit card payments that will make them more secure, but at the same time more annoying to use. They will have to keep both infrastructures running. The old fiat-based since some people may not want or know how to switch, and will need a connection between the rest of the country (fiat-based) and the "crypto province". Fine for an experiment though.

[Carlton Banks]

If this goes through, the "Gyeongbuk Coin" experiment will be a nice primer to see how a real world economy interacts with a fully crypto economy. Will be keeping tabs on this development for sure. Also the fact that they are thinking to start with "...making the identity cards for 5,000 government employees like Zug as blockchain-based digital ID cards." is a major step in the right direction.
Frankly, in the midst of all the news about policy uncertainty, this is such a great thing to read.

Policy certainty has never been required. Neither has centralisation. Bitcoin was designed to evade any policy, and decentralisation was one important way that resistance from interference (policy or otherwise) was bestowed to the Bitcoin network. You're completely wrong

[timerland]

Seems like an interesting idea.

No doubt though, the control over this cryptocurrency, if it was ever practically issued, will remain in the hands of the local authorities. it's probably not going to be a completely decentralized cryptocurrency in the traditional sense.

There's also going to be issues with getting people to adopt such centralized cryptocurrency, and the investment in education and developing this may be huge. If it does go well, however, I think that it could definitely serve as a replacement for these local gift certificates, and are just a whole lot more convenient and can potentially connect the local economy to the world as well. Just demonstrates the power of cryptocurrencies, I guess.

[snipie]

But I'm somewhat confused,

Gift certificates = Local Currency?

I am confused too. I think it is intended to be like amazon or PayPal or Starbucks gift cards which you can purchase with it but those gift cards can be used everywhere in the province. Anyway, switching to cryptocurrencies is always a good step even if it is just locally implemented.

[AltEvangelist]

If this goes through, the "Gyeongbuk Coin" experiment will be a nice primer to see how a real world economy interacts with a fully crypto economy. Will be keeping tabs on this development for sure. Also the fact that they are thinking to start with "...making the identity cards for 5,000 government employees like Zug as blockchain-based digital ID cards." is a major step in the right direction.
Frankly, in the midst of all the news about policy uncertainty, this is such a great thing to read.

Policy certainty has never been required. Neither has centralisation. Bitcoin was designed to evade any policy, and decentralisation was one important way that resistance from interference (policy or otherwise) was bestowed to the Bitcoin network. You're completely wrong

Well, the cypherpunk dream that BTC originally started out to be seems far away. It's all good and nice to think that policies can be evaded. But to be realistic, I don't think we can completely do away with it. At least, not in the short term (10-15 years).
For example, in India we had a difficult time adjusting to the ruling that barred banks from crypto transactions. We certainly needed policy certainty to convert our fiat to crypto. It was a tough phase with the Central Authorities coming down hard on fiat/crypto trades through traditional routes. Let's step out of utopia for a second. There will always be some need for policy certainty. 100% policy evasion and decentralisation is good to have. But a fair balance is more realistically achievable at the moment IMHO.
I think it will be a slow and steady progress from policy to less policy and finally to no policy.
And I'm in it for the long haul.

[Carlton Banks]

I think it will be a slow and steady progress from policy to less policy and finally to no policy.

I'm still not convinced you understand. Bitcoin does not mean "no policies", it just means "no fiat policies".

Previously, money and it's underlying system were subject to state policies, enforced by state violence and threats thereof. Now, state violence cannot affect Bitcoin, it is immune to violent control.

But Bitcoin has it's own policies, and it is those that are immune to intervention (and controlling monetary policy is something the state otherwise claims sovereignty over)

[AltEvangelist]

I'm still not convinced you understand. Bitcoin does not mean "no policies", it just means "no fiat policies".

Not inclined to convince you. Sorry. I usually avoid reverting to condescension.
But how do I convert my existing wealth/value in the fiat ecosystem to some tangible wealth/value in the BTC ecosystem without a policy framework?

[Carlton Banks]

But how do I convert my existing wealth/value in the fiat ecosystem to some tangible wealth/value in the BTC ecosystem without a policy framework?

Use a free market (of which there are several).

You're doing yourself and the Bitcoin ecosystem no favours if you volunteer information about your BTC holdings to a state that wishes to bully you in light of that information. If the state knows how much Bitcoin you have, you're right back where you started; they will literally invent reasoning to take as much of your BTC as they think is suitable for their purposes. You will have little or no BTC left, and so you will have wasted your time and effort.

[AltEvangelist]

But how do I convert my existing wealth/value in the fiat ecosystem to some tangible wealth/value in the BTC ecosystem without a policy framework?

Use a free market (of which there are several).

Fair enough. In fact, that is what is active ATM here. Everybody is doing P2P and OTC. Volumes are down. But it works. However, there's uncertainty over whether that will be targeted next. And if penalties could be imposed retrospectively.

I gather that we have separate outlooks on this and appreciate your PoV.
However, I still think that crypto friendly policies are needed because subversion makes mass adoption difficult.

[Irvinn]

What's the point of issuing a centralized cryptocurrency? It's like a different approach to credit card payments that will make them more secure, but at the same time more annoying to use. They will have to keep both infrastructures running. The old fiat-based since some people may not want or know how to switch, and will need a connection between the rest of the country (fiat-based) and the "crypto province". Fine for an experiment though.

You can switch to the use of crypto currency only on a centralized one. On a decentralized crypto currency, no state will pass, because this is impossible because the decentralized crypto currency has no connection either with the local currency or with the economy of this state. They will use the parameters of circulation of the local currency, however in the digital version. Then it is possible.

[TraderTimm]

An eastern South Korean province plans to issue its own cryptocurrency to replace the local currencies of its nine cities, according to local media. An exchange will be established for the new crypto. The coins can be used for payments within the province and merchants can accept them using smartphone QR codes.

Nice try, ruthbabe. Thought you could hide the link so I wouldn't see it was a bitcoin dot com story? Effing' Roger Ver shills man, here's an alternate link -- https://www.bitrates.com/news/p/south-korean-province-gyeongsangbuk-do-plans-to-issue-local-cryptocurrency

Reported to the mods.