Will a Blockchain Identity System in South Korea Soon Replace ID Cards?
South Korean officials are considering using a blockchain-based digital identity system for use in government and economic processes.
South Korea plans to use a blockchain-based digital identity system to replace the existing ID card system that the world currently operates with. The digital identifiers will be used with smartphones to allow ease of use across a range of industries.
The digital identifiers will allow South Koreans to use their smartphones for several activities, including government and financial processes. Hwang Seogwon, an economist at the South Korea Science and Technology Policy Institute, said of the news,
“Digital IDs can bring enormous economic benefits in finance, healthcare, taxation, transportation and other areas and can quickly catch on among the Korean population. But there needs to be more risk assessment technologically to ensure that the danger does not outweigh the benefits.”
Digital identity systems or digital identifiers are one of blockchain technology’s most talked about use cases. Several companies and projects have invested in this, including the likes of Microsoft. However, this step by the South Korean government may be one of the most result-oriented.
The digital identity system is just one of many blockchain-focused initiatives that South Korea is tackling. It is also developing its Web3 ecosystem, which could result in a huge increase in revenue.
Although it has regulated the crypto market, South Korea has not been shy about its interest in some of the hottest trends in the space. The country has shown a particular interest in the web3 and metaverse sectors.
The coastal city of Changwon has decided to recreate its industrial complex in the metaverse in an attempt to market its businesses and products. Seoul has also announced a five-year plan to build a replica of the city in the metaverse. The city of Seongnam also plans to recreate the city in the metaverse, and the entire effort is expected to be completed by 2023.
Taxes and securities laws a priority for officials
While there has been a lot of interest in the metaverse, South Korean authorities are also heavily focused on regulating the crypto market. The head of the country’s financial watchdog said cryptos could be considered securities if they met certain qualifications, which could have huge implications.
Taxes have also been discussed frequently in the country, with a tax plan for the crypto market delayed several times. The latest update saw the tax scheme, which would impose a 20% capital gains tax on profits above $1,900 in a one-year period, delayed until 2025.
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