South Korea plans to introduce blockchain-enabled identification cards to its citizens by the end of 2024 to embrace blockchain technology.
South Koreans will soon access blockchain-powered digital identification cards from the government as soon as 2024. The digital IDs will feature full decentralization based on the new plan.
The government will not interfere with user privacy with regard to the usage of the identification card. The government plans to replace physical identification cards as it embraces blockchain technology.
The Digital ID system
The digital IDs will launch in 2024 with a round of 45 million expected to adopt the technology. The government expects the numbers to increase in the span of two years after adoption.
The South Korean government will ensure the embedding of digital IDs as an app. The digital IDs will feature as an app within mobile devices in the future.
The government expects the system to work in the same manner as the physical cards. The plan ensures that South Korea adopts a decentralized identification system.
The technology will not allow the government to access information stored on people’s phones. The information also includes how the digital IDs are used, when and where.
The technology puts South Korea among the top countries in embracing blockchain technology in life. The country also focuses on implementing blockchain technology adoption in the business sector.
According to a South Korean economist, Hwang Seogwon, more is yet to come. Hwang believes that the card will feature in other sectors such as finance, healthcare, taxes and transportation.
Suh Bo Ram from the Digital Government Bureau believes that it will help businesses. The Director General reiterated that companies will allow transition online at ease through the IDs.
Other blockchain-related attempts
However, the new initiative comes second to other similar solutions provided by South Korea. Previously, the country attempted other blockchain-based digital ID solutions.
In August 2020, over one million South Koreans tested a new driver’s license system. The Koreans implemented a blockchain-powered driver’s license. The blockchain-powered license operates via Korea’s PASS smartphone application.
In September 2020, the Korea Internet and Security Agency (KISA) took another blockchain leap. The South Korean government agency commenced pilot testing on a similar blockchain system.
As South Korea continues to pave the way for blockchain, other countries will follow suit.
The economic benefits
Smartphone-implanted ID represents an emerging technology underpinning the digital economy that continues to expand. More and more people now work from home, make cashless payments, face and explore trading markets.
According to the head of the Korea Digital Regulatory Authority, the initiative will boost the economy. South Korea expects to gain at least $42 billion in economic value in a decade.
The economic value represents nearly 3% of Korea’s Gross Domestic Product (GDP).
