Busan’s Ambitious Journey Towards Becoming a Blockchain City with a $75 Million Development Plan
Busan, South Korea‘s second-largest city, is on a mission to revolutionize itself into a blockchain city. To achieve this vision, the city administration has launched an ambitious $75-million development plan.
The focal point of this initiative is the development of a public blockchain network that seamlessly integrates with mainstream blockchain platforms like Ethereum and Cosmos. The objective is to unify blockchain-based services from various mainnets onto a singular city-level platform, propelling Busan into the league of blockchain cities.
In order to fund this transformative project and ensure alignment with global standards, Busan City has earmarked a budget of 100 billion Korean won (equivalent to $75 million). The Blockchain Innovation Fund (BIF) is the financial mechanism through which these funds will be raised, with public financial institutions in Busan making investments. Remarkably, nearly 100 private companies have already expressed keen interest in contributing to BIF. This private fund is dedicated to nurturing Busan’s blockchain industry and advancing its infrastructure, and it operates under the guidance of financial and public institutions within the city.
The public blockchain development is a pivotal aspect of the broader Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule plan, both designed to propel Busan toward becoming a prominent blockchain-focused city.
The official announcement highlighted Busan City’s active experimentation with diverse blockchain technology use cases within its trade-free zone. However, challenges arose as these projects were executed on different blockchains, creating an inconvenient experience for businesses. Consequently, the city administration resolved to focus on implementing a public blockchain at the city level that seamlessly aligns with global blockchain networks such as Ethereum.
Busan City is also actively participating in the establishment of the Blockchain Trust Framework technology standard, led by the Korea Internet & Security Agency, underscoring its commitment to industry best practices and technological excellence.
The overarching project aims to enhance the quality of private services and foster seamless interconnection between these services, emphasizing crucial requirements like blockchain technical system, performance, and security levels. These standards will not only elevate private services but also be instrumental in enhancing public services within Busan City.
Looking ahead, the long-term blockchain development plan includes the establishment of the Busan digital asset exchange in the first half of 2024. This exchange will not only list digital assets but also tokenized securities, spanning precious metals and raw materials such as gold, copper, and oil. As part of future goals, the administration driving these projects envisions tokenizing and trading global intellectual property rights and carbon emissions rights.