S Korean Province Mulls Local Stablecoin-powered Universal Basic Income

Adoption Economics South Korea Stablecoin

Author

Tim Alper

Author

Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Author Profile

Share

Copied

Last updated: 

June 26, 2023

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

The Governor of Gyeonggi Province, South Korea’s most populous province, has suggested launching a universal basic income – funded by local stablecoins.

Per OhMyNews, the proposal, spearheaded by Lee Jae-myung, who was elected Governor of Gyeonggi Province in 2018, is part of a package of measures aimed at stimulating the province’s economy.

Gyeonggi is South Korea’s industrial and commercial backbone, and comprises a number of tech hub cities, including Seongnam and Suwon, as well as the country’s third-biggest city, Incheon. After years of meteoric growth, the area is now facing its first significant economic slowdown since the late 1980s.

The region is also the home of a number of the country’s largest-scale local stablecoin projects, most notably those in Gimpo, Seongnam and Siheung. Back in March, Gyeonggi officials expressed their desire to expand the reach of all three projects in a bid to mitigate the economic fallout of the coronavirus pandemic, and hand out emergency economic stimulation handouts in the three tokens. The stablecoins make use of QR codes and smartphone-based wallets.

However, Lee’s new proposals would look to go a step further.

Lee’s provincial government has already pioneered a form of basic income payments to rural communities – claiming it is the first local government in the Organisation for Economic Co-operation and Development to do so.

And as part of post-coronavirus pandemic economic stimulus packages, Gyeonggi now wants to push ahead with plans for a universal basic income (UBI) rollout that would make use of existing or new stablecoins in place of fiat.

Regardless, the province is set to issue some USD 1 billion worth of tokens this year, double the amount it issued last year. Per a province-wide survey, 68% of Gyeonggi residents and 63% of companies based in the province said they approved of existing stablecoin projects this year.

The province would likely need central government approval for a project of this scale, but Seoul has previously indicated that it is prepared to weigh up the arguments for a UBI – with debates on the feasibility of UBI issuance slated for later this year.
__

Learn more: Could Blockchain Really Enable ‘Data As a Universal Basic Income’?