Is it not interesting that at some point, some Asian countries where really strong against the use of cryptocurrencies, because we could see different news about the clamp downs on crypto traders and users in the different countries. However, it is nice to see that some of the Asian countries have begun to ease on the leashes and are beginning to allow the use of cryptocurrencies. China is one of such countries, and South Korea is not left out, as they are in the news for something innovative.
However, it is not really about cryptocurrencies this time, but they have begun to show interest in the underlying blockchain technology. In a recent development, a top credit card issuing company in South Korea, known as Shinhan Card, has won the patent for the creation and facilitation of a payment system that is blockchain-based.
Blockchain Technology in Banking
According to a report by Korean media, The Korea Times, the card company which is an affiliate of the Shinhan Financial Group, announced that it had gone to the drawing board, implemented an idea, and came out with an innovative technology in form of a blockchain-based service that offers users the functionalities of the traditional credit card, including having the ability to make monthly installments, set limits for spending, as well as make payments for purchases. Furthermore, the report made it known that this service could pave the way for credit transactions that are cardless, hence, users will be able to perform their payments with the aid of mobile applications on different platforms.
It is imperative to note that with such innovative technology, there will be disruptions in the use of the traditional card service, which is usually based on different intermediaries that include the payment gateway, service provider (value added network), and the credit card company. It is on record that Shinhan Card got the patent about 18 months ago, after performing studies, reports and carrying out tests. According to theKipris (Korea Intellectual Property Rights Information Service), the innovation will generate a blockchain as well as a digital asset based on the user’s credit limit, and the blockchain will get updated based on the payment details, among other functions for the users.
Goal of Expanding Globally
With this present achievement, Shinhan Card has eyes on the horizon, as the company has begun to make moves that will facilitate an expansion of the credit patent to different parts of the world including the U.S., Europe, China, Japan, Indonesia, and Vietnam. The Shinhan company has had its eyes on the blockchain technology for a while, and even its Shinhan bank made an announcement earlier this year about its adopting the use of the blockchain technology for different reasons, including the speeding up of the processes involved when performing approvals for loan products.
Using the blockchain for daily real world use cases is one of the ways that the technology can become mainstream, and it is nice to know that the countries that were in doubt at first, have begun to see just how useful the tech is.