LUNA on the Rise as South Korean City Mulls Terra Stablecoin Proposal

Tim Alper
Last updated: | 2 min read

Terra’s LUNA token is enjoying a rapid burst of growth, with prices up almost 9% on the past 24 hours – following news that the South Korean firm may be working on local stablecoin-related plans with the nation’s second city, Busan.

Source: iStock/PeskyMonkey

At 09:05 UTC, LUNA, ranked 21st by market capitalization, trades at USD 18.79 and is also up by 35% in a week. The price is almost unchanged in a month, while it skyrocketed by 9,499% in a year.

Per Tech M, an advisory committee working on a revamp for the city’s Blockchain Free Zone for the newly elected mayor Park Hyung-joon has put forward a proposal to enlist the help of Terra in its local stablecoin plans.

Park’s manifesto contained a number of blockchain and local stablecoin-related pledges.

The media outlet stated that the city authorities had confirmed that its advisory group was composed of a range of “blockchain experts” and that this group had outlined a blockchain action plan for the Park regime. The plan involves the possible issuance of digital ID cards for Busan citizens, upgrading the Dongbaekjeon local currency using blockchain technology and plans for a city-operated “digital asset exchange.”

And the advisory committee has reportedly suggested that Terra stablecoins could be used on the exchange, alongside Dongbaekjeon tokens.

The media outlet stated that the committee’s membership comprised financial services operators and crypto-related firms, including firms from the decentralized finance (DeFi) space.

Busan, like many other cities in South Korea, has announced plans to provide financial boosts to the local economy by using local stablecoins to “reducing the burden on small business owners and local government organs.”

The new proposed “digital asset exchange,” the committee noted, would ensure that only identity-verified parties with appropriate know-your-customer (KYC) and anti-money laundering protocols in place would be allowed to take part.

Elsewhere, the chat app giant Kakao and the New York-based blockchain firm ConsenSys have become the latest companies to begin developing infrastructure for a proposed South Korean digital own – despite the fact that the Bank of Korea is still yet to confirm its central bank digital currency (CBDC) plans.

In a press release, Kakao’s blockchain arm Ground X, the operator of the Klatyn blockchain protocol indicated that its goal with the new move was to develop a platform that would allow it to enable the issuance of the digital won.

The firms will work on an initial pilot project and will also explore interoperability solutions for Klaytn and Ethereum Layer-2 solutions, as well as possible interoperability options for other blockchain protocols.
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