South Korea plans to offer digital identities Bloomberg reported Monday that citizens will be able to use smartphones with blockchain encryption to aid their economic development in 2024.
According to the South Korean government, the ID embedded into the smartphone is an essential emerging technology that will support data development.
The network verification process can be simplified by digital identities on blockchain. Users can log in without requiring a certificate or text verification code.
Digital IDs are expected to be widely used by the government. This will allow for greater efficiency and reduce administrative time. It also helps in reducing wage fraud and expanding consumer credit. It facilitates trade and creates new markets.
Alternatively, other applications of digital IDs include: facilitating online medical services; hotel check-in using a smartphone; prevention of ID forgery and theft; remote approval of contracts; fast boarding, etc.
McKinsey & Company believes introducing digital IDs could boost a country’s gross domestic product (GDP) by as much as 13% and reduce business costs by trillions of dollars.
Hwang Seogwon, an economician at the Korea Institute for Science and Technology Policy, stressed that risk assessment is crucial.
Digital IDs could bring huge economic benefits to finance, healthcare, transport, and other areas. They may also be quickly adopted by the Korean population.”
Suh Bo Ram, the head of Korea Digital Government Bureau, stated that South Korea could benefit from at least 60 trillion won ($42Billion) in economic value over a ten-year period. This figure is close to 3% South Korea’s GDP.
South Korea plans to create a digital identity system that will be used by 45 million people in two years. The government won’t be able access any information on mobile phones of individuals, including details about who and where they were used. Instead, the system will rely solely on blockchain technology-based centralization identity.