South Korean Shinhan Bank entered into a deal with telecommunications enterprise KT. Companies unite their efforts to create blockchain-based solutions.
Recently, regional governments announced their intention to launch digital vouchers. It is assumed that they can substitute fiat money in some areas. The initiative is aimed at revitalizing local economies in the regions of South Korea.
Under the new agreement, Shinhan Bank and KT will jointly establish a blockchain platform to capitalize on regional governments' recent moves to introduce digital vouchers. Telecommunications company will be responsible for developing the platform, and the bank will create financial instruments to be integrated with the platform.
WHY IS IT IMPORTANT?
1.The Government of South Korea actively invests in blockchain technology development in the country. Korean Ministry of Science and ICT earlier reported that the government plans to invest a total of $9 million by the end of 2019 as part of the country's desire to implement a plan for studying distributed ledger technology. 2. Shinhan Bank also sees great potential in the blockade. The Financial Institute established a research center focused on technology within the Digital Strategy Department.