South Korea's Central Bank has announced intentions to apply cryptocurrencies and blockchain technology to the announced project Cashless society, reported CoinTelegraph.
The project trial was presented in the 2017 payment report. According to the released data, the Bank is said to consider the use of blockchain and cryptos, in particular, blockchain technology and passwords to payments.
Besides, Korea's Bank set up an agency aimed at researching and analyzing cryptocurrencies and their influence on the financial system.
With the announced project, the Bank is striving to reduce the cost of physical currency issuing among other targets. For reference, issuing in the 2016 cost KRW 53.7 billion ($47 million).
One more reason behind this project is an attempt to make a grey economy more transparent.
“It can open the underground economy, and thus enhance equivalence in taxation. The shoebox full of 50,000 won banknotes that you see in movies will disappear in reality (with the advancement of a cashless society),” commented an analyst in Shinhan Investment Corp.
As the media reports read, Seoul started considering abandonment of physical money in 2016. The project Cashless society is slated for 2020. About 30,000 shops agreed to take part in the trials. In addition, South Korea’s government voiced this April plans about the launching of S-coin for municipal social benefits.