Source: AdobeStock / tanawatpontchour
South Korea’s crypto industry may have suffered a major blow over the weekend as a number of exchanges and wallet providers closed or suspended operations: A tough regulatory deadline turned a once thriving sector into a tiny “oligopoly.”But the story is very different in the world of blockchain-based payroll and fiat TOKEN-bound stablecoins.
The Korea Minting and Security Printing Corporation (KOMSCO) is a company that until recently earned its money with cash: the company prints banknotes and mints coins for the Ministry of Finance.
But in recent years it has moved away from paper and banknotes and has penetrated deeper into the rapidly growing world of local stablecoins. Working with city and provincial authorities across the country, KOMSCO has launched numerous local stablecoins and paperless gift certificates using blockchain technology.
Many government agencies used these programs to send the equivalent of coronavirus pandemic-mitigating stimulus checks to local residents – to steer people away from monolithic e-commerce platforms and back to local businesses. Seoul was also on a” cashless “and” contactless ” ride, a factor that helped KOMSCO boost its stablecoin offerings.
Last year, the company made record profits, went on a hiring spree and announced plans to pay its employees a portion of their salaries in stablecoins.
Now the company seems ready to take another foray into the world of cashless, blockchain-based payments. According to the Choongchung Times, KOMSCO-owned blockchain-based gift voucher platform Chak was launched nationwide in 37 cities and counties last year after launching in 2019. But by the end of this year, the platform will be launched in another 70 cities and counties in South Korea.
A growing number of local authorities are also turning to Chak, which, according to the media, was taken over by 270,000 providers and franchisees in the first half of this year. Over 1.1 Million people have started using the platform for payments, and the cumulative total value of gift certificates purchased on Chak is around $ 1.7 Billion to date.
But the biggest customer for the Chak platform seems to be by far the local governments. City and provincial authorities have paid the premiums and other fees of their officials with chak certificates instead of fiat, and so far have spent a whopping USD on the platform.