Busan takes steps towards becoming a ‘Blockchain City’

Posted: September 21, 2023

• Busan’s city administration has set aside $75 million for blockchain development.
• The government of South Korea aimed to build Busan City as the blockchain center of Asia.

The Busan City administration is developing a public blockchain network as part of its plan to turn the South Korean city into a “Blockchain city,” reported a local news publication.

The network will be compatible with leading blockchain networks such as Ethereum [ETH] and Cosmos [ATOM]. This way, all the blockchains will be available on a single platform at the city level.

The city administration has set aside 100 billion won ($75 million) in budget for blockchain development under the Blockchain Innovation Fund (BIF). It will raise funds through investments from local public financial institutions.

So far, around 100 private companies have expressed their interest in the matter.

The Busan administration is going to implement the project under the Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule plan.

The city administration has decided to focus on a public blockchain at the city level that is compatible with mainstream blockchains.

In another development, the City administration also announced its plan to establish a digital assets exchange in November. The upcoming exchange will list tokenized commodities, instead of cryptocurrencies, on a blockchain.

The exchange will be set up only with private capital, with administrative and financial support from the local government.

Will Busan be Asia’s blockchain center?

The government of South Korea aims to build Busan City as the blockchain center of Asia.

In July 2019, Busan City was officially designated as a regulation-free blockchain zone. The city plans to implement blockchain technology in a range of sectors, including tourism, finance, logistics, and public safety.

Since then, the city administration has been pushing its blockchain plans. In December 2019, it announced the creation of a digital currency.

In December 2022, the administration announced the formation of a steering committee, comprised of 18 local blockchain experts. But the committee didn’t include any of the top global exchanges operating in the country.

Busan City is now working on a city-level blockchain network to address the requirements of the local business community.