South Korean citizens will be able to use blockchain-based digital IDs instead of physical cards as soon as 2024.
The government of the Republic of Korea will allow citizens to use blockchain-based digital identification with the same legal validity as physical resident registration cards. This was reported by Bloomberg.
The initiative is intended to stimulate the country’s economy. According to Hwang Seogwon, an economist at Korea’s Science and Technology Policy Institute, digital IDs could be used in healthcare, finance, transportation, and taxes.
The digital ID will be integrated into smartphones as a mobile app and be fully decentralized. This way, the government won’t be able to track the use of the digital ID. Therefore, Seogwon stressed the need for additional technological risk assessment to make sure that the dangers don’t outweigh the benefits.
Suh Bo Ram, Director-General of Korea’s Digital Government Bureau, argues that introducing digital IDs will boost the country’s economy by enabling many businesses to go online. According to Ram, the initiative will raise about 60 trillion KRW (~$42 billion) over the next ten years, which is about 3% of the country’s GDP.
Digital IDs will be available in 2024. The government expects about 87% of the population (~45 million) will switch to this technology within a few years.
The new government of South Korea is preparing a regulatory framework for cryptocurrencies, which is scheduled to come into force in 2024. In this regard, the country’s actively introducing blockchain, exploring metaverse technologies, and returning previously banned initiatives.
