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South Korea to Launch Blockchain Based IDs in 2024

source-logo  cryptodaily.co.uk 17 October 2022 15:00, UTC

South Korean citizens will soon have access to blockchain-based identity documents instead of traditional physical cards as soon as 2024.

Per reports by Bloomberg, the South Korean government will soon implement digital identity documents as an application on mobile devices, in a similar fashion to physical resident registration cards. Around 45 million citizens are set to adopt the technology over the next two years. The technology will allow South Koreans to verify their digital IDs using blockchain technology. Hwang Seogwon, an economist with the South Korea Science and Technology Policy Institute said the following about the initiative:

Digitals IDs can yield huge economic benefits in finance, healthcare, taxes, transportation, and other areas and may catch on quickly among the Korean population. But there has to be more risk assessment technologically to make sure the danger doesn’t outweigh the benefits.

The COVID-19 pandemic had far-reaching economic implications and South Korea was one of the countries most significantly impacted. As such, many countries have accelerated their shift toward digitization to stimulate economic growth. However, with accelerated technological advances, cybersecurity concerns have become an issue for the safe storage of sensitive data. In an effort to combat the surge of cyber security concerns, blockchain-based IDs have come to the forefront to alleviate the complications that cyber security issues have caused many countries.

According to the Bloomberg report, the initiative will leverage the benefits of storing users’ data in a decentralised manner while keeping people’s phone data, including how and where they use their digital IDs, private from the government. The effort is helped by the high number of smartphone owners in the country. About 96% of all individuals in South Korea own at least one smartphone and report using it at least once a month. The country is developing other blockchain-based systems beyond the digital identity initiative. It is also developing a Web 3.0 ecosystem which could result in massive revenue yields. South Korea has also shown a particular interest in the metaverse according to reports by Blockworks.

The coastal city of Changwon recently made the decision to recreate its industrial complex in the metaverse in an effort to promote its businesses and products. Among others, the capital city of Seoul announced a five-year plan to build a replica of its city in the metaverse.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.