KT Corporation, one of the largest telecommunication companies in South Korea, has been selected to develop a cryptocurrency that will be used locally in the South Korean city of Gimpo. According to a February 14 report from ZDNet Korea, the cryptocurrency dubbed the “K token,” will be introduced in April.
A pilot project is scheduled to be carried out next month, the report said, after which the company will decide whether the April launch date is feasible. The city of Gimpo plans to issue 11 billion won, or around $9.7 million worth of K tokens each year. The amount will include budgets for various social services and municipal development projects.
The tokens will only be available for use with merchants in the Gimpo area, where payments will be permitted by scanning QR codes. KT Corporation will enable merchants to request funds to be converted into fiat and transferred to their bank accounts without incurring fees.
If the coin’s use and performance in Gimpo are deemed satisfactory, KT plans on expanding the cryptocurrency to other local governments. Yeong-il Seo, the head of the blockchain center and senior vice president at KT Corporation, said that the introduction of K token “will contribute to the revitalization of the regional economy.”