The South Korean government will be embracing blockchain technology moving forward. This will be the major aspect of the push for a stronger FinTech technology in Korea. There will be many trial projects in 2017 for financial industries. This was stated at by the Financial Services Commission at the FinTech Development Conference. The major focus being on the promotion of blockchain technology within organizations and startups.
Many suspect that blockchain technology is the future and South Korea is banking on the fact that blockchain technology will be the future of FinTech. However, 2017 will be crucial in finding ways to allow blockchain technology to help save costs and generate revenue. There has been so much progress with blockchain already but the main issue is that it has still not yet been fully adopted by the mass market. For example, 90% of all bitcoin transactions are being conducted in China. Can China lead the way in making blockchain technology the future? It is very possible, which is why it is smart for Korea to get involved in blockchain now rather than later.
The key for 2017 will be having financial industries coming together to embrace blockchain technologies. In Korea, that has already started to happen. In December of 2016, a total of 16 banks and 25 stock firms formed a consortium in order to use blockchain technology. Together they will form a co-blockchain platform and start test services by the end of 2017. The goal would be to make it easier for customers to process transactions to foreign designated banks by using blockchain technologies. The process now is very complicated and involves too much paperwork and confirmations. In the end saving time and money by using blockchain will be key in having the mass market embrace this new technology. Now with the help of the Korean government, blockchains will have better performance and scale thanks to regulatory and legal advantages.
The Korean government will do their part in educating blockchain technologies to industries outside of financial services and into the public sphere. More importantly, they need to communicate why and when blockchain is not applicable in order to bring credibility. South Korea is considered one of the world’s best ICT countries so it makes sense for them to embrace blockchain. Once financial industries install blockchain technologies within their financial services, there will be no need for a central administrator. This will change current financial ecosystems in Korea and help them keep up with major foreign banks that are already using blockchain technology in regards to trade. Korea seems to be going all in on blockchain technology and we will see by the end of 2017 if they made the right call.