GLOSFER Launches Full-Scale Blockchain-Based Local Currency Development Project

[Asia Economy Reporter Koo Eun-mo] As the distribution of disaster relief funds due to the novel coronavirus infection (COVID-19) increasingly takes the form of local currency, Glosfer's local currency construction projects based on blockchain technology for local governments are expected to gain momentum.

Glosfer, an affiliate of Glosfer Labs, a KOSDAQ-listed company, announced on the 7th that requests from local governments to build blockchain technology-based local currency systems have significantly increased as more local governments distribute emergency disaster relief funds in local currency to revitalize local economies.

Recently, the government decided to provide emergency disaster relief funds to the bottom 70% income households affected by the COVID-19 crisis. The funds are financed through a cost-sharing method between the central government and local governments, and many local governments are distributing the funds in the form of local currencies or local love gift certificates to stimulate their local economies. As a result, Seocho-gu, the only district in Seoul that had not issued Seoul Love Gift Certificates, decided to issue them, reflecting a sharp increase in the issuance and usage of local currencies and local gift certificates across various regions.

Glosfer has successfully built the Nowon local currency system based on blockchain technology. Leveraging this experience, it has been providing related technology and platforms to schools and local governments through a consortium. To date, it has carried out numerous local currency system construction projects.

Additionally, in the first half of last year, Glosfer successfully established the 'Jeonbuk Smart Tourism Platform,' which shares usage information of Jeollabuk-do's local currency 'All@Jeonbuk' in real-time with Jeonbuk Provincial Office, Hanok Village Merchants Association, and others, analyzes related data, and offers customized tourism services for consumers. Jeollabuk-do plans to expand this platform from Jeonju Hanok Village and Nambu Market to other cities and counties within Jeollabuk-do, creating and spreading a 'virtuous cycle tourism ecosystem.'

A Glosfer official stated, “There has been steady demand for local currency construction, and Glosfer has participated in various projects, but a drawback of local currency projects was that usage did not increase.” He added, “As the government and local governments increase budgets for relief funds to revitalize local economies, the issuance and usage of local currencies and local love gift certificates are rapidly increasing, activating the local currency business.”

He continued, “Stability and reliability are the most important factors in building local currency systems, and Glosfer’s local currency construction solution has already been verified through system construction for various local governments. Currently, we are negotiating with multiple local governments to build local currency systems.”