KT has been selected as a preferred bidder to “operate a local currency platform” of Gimpo City, Gyeonggi Province. KT and Gimpo will sign a contract for the local currency project next week and plan to unveil the service formally in April.

According to KT Thursday, Gimpo has been pushing ahead with a plan to issue 11 billion won in local currency a year to revitalize the local economy through a virtuous circle of regional funds. KT had proposed a blockchain-based local currency platform through which illegal distribution is blocked and mobile and credit card transactions are possible, and the leading telecom giant was chosen as the preferred bidder.

KT and Gimpo plan to conduct a pilot project for the city’s civil servants in March. Gimpo’s 11 billion won in local currency includes money for ordinary use and various other policy benefits like payments for youths and postnatal care fees. Gimpo is conducting a naming contest for its local currency to boost citizens’ participation and promote the local currency and plans to provide prize winners with the local currency.

K-Token, a blockchain-based encryption token technology, is applied to KT’s local currency platform. K-Token makes it possible for the local currency to be issued by setting such conditions as region, companies, authority and period freely. Gimpo’s local currency can be used only in stores affiliated with Gimpo, whereas its use will be limited in such unfit affiliates as big retail shops and entertainment places.

The platform offers a mobile app-based QR (quick response) payment system. To help increase users’ convenience, it will also offer a credit card payment service in consideration of people vulnerable to information technology. Franchisers can ask for transfer of money to their bank accounts after payments are made and there is no fee.

KT plans to expand its blockchain-based local currency platform business to local government bodies across the country including Hadong, Namhae and Ulsan. The IT giant also considers offering diverse business-related solutions involving regional products and tourism by analyzing local currency data. /minsy@decenter.kr

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