S.Korea introduces blockchain-based digital IDs for citizens by CoinEdition

• Korean authorities will replace existing ID cards with digital IDs for smartphone users.
• Citizens can use digital IDs for money transfers, government benefits and casting votes.
• According to the digital government agency, Korea could earn $42 billion within a decade.

The South Korean government plans to boost economic growth by offering a digital identity protected by blockchain to its most tech-savvy citizens, according to recent reports released by Bloomberg.

Mobile IDs are the latest new technology underpinning the rapid expansion of the digital economy as more people work from home, pay with cashless methods and explore the metaverse.

The use of digital ID reportedly simplifies online verification, eliminating the need for certificates to be photographed or authentication codes to be sent via text. Digital IDs will make activities like transferring money, applying for government benefits and even casting a vote as easy as inserting a pin.

Hwang Seong-wan, economist at the Korea Science and Technology Policy Institute while briefing on the latest Korean innovation said:

Digital IDs can bring enormous economic benefits in finance, health care, taxes, transportation and other areas and can quickly catch on among the Korean population.

Korean government hopes to bring complete online transformation in all services and sectors according to the Korea Digital Government Agency. The agency’s director general stated that Korea could reap at least 60 trillion won ($42 billion), or 3 percent of GDP, in economic value within a decade.

Also, there is very less reason to be concerned about the privacy and security of digital IDs according to Korean authorities. Since the system relies solely on decentralized identity, authorities will not be able to access information stored on individual phones, including the use of digital IDs, how and where they are used.

In a research based on digital IDs by McKinsey that underlies the importance of digital authentication, says:

When designed well, digital ID not only enables civic and social empowerment, but also enables real and inclusive economic gains – a less well understood aspect of the technology.

The Portulans Institute, a Washington-based think tank, believes Koreans’ enthusiasm for early adoption is also a key to their digital achievements. Portulans ranks Korea among the top 3 network-ready countries in Asia and the Pacific.

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