The government of Busan, the second largest city in South Korea , has allocated 100 billion won ($75 million) to develop an open blockchain system compatible with global standards, local media reported on September 21. .
The city's blockchain network will initially grow to be compatible with popular blockchain networks such as Ethereum and Cosmos. This way, local blockchain protocols will be easily integrated with global blockchain systems.
Additional Capital will be raised through the Blockchain Innovation Fund (BIF), a private fund that supports the development of the blockchain industry in Busan and is managed by the city's financial and public institutions. According to reports, more than 100 local private companies have shown interest in the project.
In a statement, a government official noted, the city has previously tested various applications of blockchain technology in the free trade zone. However, most are implemented on different blockchain systems, creating many barriers to widespread adoption of this technology. That's why Busan decided to focus on creating a single public blockchain system compatible with global standards.
Busan's long-term plan to develop the blockchain industry will include the establishment of the 'Busan digital asset exchange' in the first half of 2024. The platform will list various digital assets such as stocks Tokenize, precious metals, raw materials, intellectual property rights, and carbon emissions.