Does A Local Crypto Have A Future - South Korean Example
The private crypto industry has been around for a while. This industry has made impressive progress amidst, apprehensions and legal challenges. Bitcoin, ETH, GTN, XRP, XLM and over 5,000 other cryptocurrencies would come under the category of 'private' cryptos.
While the world was initially obsessed with the negative side of cryptocurrency, it soon became tough to ignore some of the benefits that this financial innovation could deliver. This was all happening as the private industry kept moving ahead. The COVID-19 pandemic that devastated most of 2020, highlighted glaring weaknesses in conventional money and the system that operated it.
It then dawned on the powers that be that, framing laws and regulations to deal with the negative aspects of cryptocurrency while, allowing the private crypto industry to develop, was a prudent and feasible approach. This strategy quickly gained support across the globe.
We presently stand at a point where, nations seem to be keen on issuing their own official cryptocurrency. This would be in addition to the numerous private cryptocurrencies that continue to be launched. Each nation would have just 1 official crypto that, would be launched and governed by the government or the nation's apex bank. This is more commonly referred to as a CBDC (Central Bank Digital Currency). Terms like Digital Dollar, Digital Yuan or Digital Yen refer to CBDCs of those respective nations.
So we have a whole collection of privately launched cryptocurrencies and will soon have, a single official crypto or CBDC for each nation. Let's just mention that, not all nations have expressed their desire to digitize their conventional currencies. China has made significant progress in launching the Digital Yen, the US does not seem to be too keen to enter the rat race. Other nations have expressed varying degrees of eagerness.
South Korea has brought up an entirely new dimension to cryptocurrency - let's call it a local crypto. The city of Busan has launched a crypto of its own. This is surely not a CBDC and cannot be referred to as a private crypto in the strict sense. The city authorities have presumably taken the initiative to launch and govern their local crypto. Reports claim that the city has now set up an online sales portal, that is designed to accept this local crypto as the mode of payment. At this point there does not seem to be news of any other local crypto, from any part of the globe. However the possibility of a growing trend for local crypto cannot be ruled out. It all depends on how the Busan effort works out.
It is important to evaluate the scope, feasibility and legality of local cryptocurrency. This is something that cannot be seen in isolation and must be, viewed in the context of private crypto and CBDC. The central government will need to take ultimate responsibility for cryptos, launched by local authorities within the country. This could end up being an enormous task, something that would require significant resource allocation.
Glitzkoin CEO Navneet Goenka, talked about a feasible option, '... crypto space should be home to private cryptocurrencies and CBDCs, nothing more. Remember that specific rules and legislations will be required to govern these. Cases like the Busan City episode, should operate under the same framework that will evolve for private cryptocurrency. Having said that, we do not seem to be hearing about any other local cryptos'.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.
Related Resources: [Project Updates]