Crypto
Korea Approves Blockchain-Based Digital Currency Project for Government Expenses
The Ministry of Science and ICT (MSIT) in South Korea has approved a regulatory exemption for a blockchain-based digital currency project to test its use in paying government expenses.
The project involves six banks: KB Kookmin Bank, NH NongHyup Bank, Shinhan Bank, Ulsan Bank, IBK Industrial Bank, and Hana Bank.
The participating banks plan to issue a digital payment method called 'prepaid tokens' based on their deposit accounts. This will be used for government expenses such as operational fees.
Under current law, government expenses can only be paid using government-issued cards or bank transfers, and there is no legal basis for using digital currency for payments.