"Let's Drive Global Demand by Combining Local Currency with Public Blockchain"

A suggestion has been made that local currency, which has been used as a means to stimulate domestic demand, could evolve into a global digital asset if combined with a public blockchain. It is analyzed that local currencies can expand beyond regional circulation to embrace global participants such as foreign tourists, overseas Koreans, and Hallyu fans.

At the forum 'Korea Initiative: The First Step Toward Digital G2' held at Hashed Lounge in Gangnam, Seoul, on the 7th, Professor Jongseop Lee from Seoul National University's Business School stated, "If local currency is issued based on a public blockchain, it can attract global demand beyond revitalizing the local economy."

Professor Lee continued, "For example, if Busan City's local currency 'Dongbaekjeon' is issued on a public chain, the transaction records and balance data remaining in users' wallets can provide tailored benefits for domestic and foreign tourists." He explained, "Local currency can evolve from simply a regional circulation tool into an ecosystem that continuously attracts outsiders." Through a public chain-based system, 'one-time consumers' can be turned into 'stakeholders who are incentivized to revisit.'

He said, "Not only local residents, but also tourists, digital nomads, overseas Koreans, and Hallyu fans can use local currency and build connections with the region." He emphasized, "Public blockchains are structured to expand into borderless digital networks based on tokenization."

However, it has also been pointed out that institutional support is essential to realize this kind of digital transition. Professor Lee stressed, "To operate local currency for global participants, a digital identity infrastructure must first be established," and, "A privacy protection framework for cross-border wallet use, expansion of regulatory sandboxes, and technical and policy reviews on data merging and utilization must be conducted together."

He added, "From now on, it's not about discussing 'whether to introduce blockchain-based currency or not,' but rather, how to design and scale it." He said, "Now is the right time for South Korea to experiment with new economic models through blockchain-based local currency."