Authorities in the South Korean city of Busan have allocated funding to develop an open city DLT system that will be compatible with blockchain networks such as Ethereum and Cosmos.
The administration of Busan, the second-largest city in South Korea, has allocated 100 billion South Korean won (~$75 million) to develop an open blockchain system compatible with global standards. This was reported by a local media outlet.
The city’s DLT network will be developed initially compatible with popular blockchain networks such as Ethereum and Cosmos. In this way, local blockchain protocols will be easily integrated with global DLT systems.
Additional funds will be raised through the Blockchain Innovation Fund (BIF), a private fund supporting the development of the blockchain industry in Busan and managed by the city’s financial and public institutions. According to the report, more than 100 local private companies have expressed interest in the project.
In an official statement, a local government spokesperson noted that the municipality has previously tested various uses of blockchain technology in its commercial free zone. However, most of the pilot projects were conducted in different DLT systems, creating a number of obstacles for mass adoption of the technology. That’s why the city administration decided to focus on creating a single public blockchain system that would be compatible with global standards.
The municipality’s long-term plan to develop the blockchain industry in the city also includes the establishment of the Busan Digital Asset Exchange in H1 2024. The platform will list various digital assets, including tokenized securities, precious metals, raw materials, intellectual property rights, and carbon emissions.
The South Korean authorities are actively using blockchain technologies within government projects. DLT systems are used for digital identification of military personnel and civilians and for online voting.
