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Telecommunications Company From South Korea Allows Payments in Cryptocurrencies

The blockchain technology is becoming more and more applied in various sectors. This time, the biggest mobile phone services provider in South Korea, SK Telecom, announced it would be using the blockchain technology to process payments of services and subscriptions, with the goal of bringing greater comfort and offer better services to its clients.

The published information shows that the company will launch a system for the authentication of identity based on the blockchain technology. This system will, according to the company, simplify the process of subscribing and other processes for verification related to the services provided by SK Telecom.

Moreover, the company is also preparing a project called “Token Exchange Hub”, that will serve as a center for exchanging tokens. By using this center, the startups and small and medium companies could organize initial coin offerings (ICOs) in a transparent and secure way, as well as connect with investors to impulse the growth of the industry.

The company will also establish an asset management service by creating a P2P (Peer-to-Peer) platform that would allow the clients and users of SK Telecom to exchange values directly and securely in a blockchain network. The Executive Vise PResident of SK Telecom, Oh Se-hyeon, said: “We will be able to manage all of our banking accounts, credit cards, mileage, and other financial and non-financial assets and cryptocurrencies. Moreover, we will be able to provide payment services tailored to the lifestyle of our customers. SKT will provide systematic administrative supports for startups to issue bitcoins in a more transparent and safe manner through the platform […] We will provide consistent supports for companies that will do businesses using blockchain technologies and help create a blockchain ecosystem.”

The main motive of SK Telecom is to improve the services for its clients and innovate the way in which the data is handled, along with the payment options for the company’s services. She said that the way to execute transactions will be innovatively different with the blockchain technology.

Nevertheless, if we have in mind that the authorities in South Korea banned the ICOs in September last year, at least until a better regulation is introduced, it will be interested to see how SK telecom will manage its initiative in order for the companies to be able to start with this type of offers. Despite the fact that SK Telecom said it would not be launching an ICO campaign and would not create any token or its own cryptocurrency, it will be providing guidance and support to the companies that would like to create their own ICO.

The financial authorities of South Korea back in March this year announced they were evaluating the decision to allow the organization of ICOs in the country again by emitting an authorization for their execution.

On the other hand, the SK conglomerate had already dealt with the blockchain technology. Last year, the company announced it would develop a logistics system that would be using the blockchain technology to digitalize the information about shipping and other operations for coordinating this type of services, organize the company and the distribution  of its products.

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