South Korea is in the process of testing a novel digital identity card system. This innovative system is a digitized version of an existing one that has been in place for nearly six decades. It is reported that blockchain technology is being employed to bolster the security of this system.
The digital identity card will be trialled in nine regions, among them the cities of Sejong and Yeosu, and the counties of Geochang and Yeongnam. It will be made available to residents aged 17 and above in these specified regions.
The new digital system is a modernized version of the national ID card system that was introduced in 1968. In 2021, however, the South Korean government unveiled three new types of digital identification cards. These include a mobile driver’s license, a veterans’ registration card, and an overseas ID card.
Digital IDs are gaining traction globally as a growing number of governments strive to digitalize their services. One of the significant hurdles to this process is cybersecurity. Since citizens’ identities are tied to almost every aspect of their daily lives, it is crucial for governments to ensure that they are adequately protected, especially in an era where AI technology is propelling cybercrime to unprecedented levels.
The South Korean government intends to utilize advanced encryption and blockchain technology to enhance security, according to local reports. It is yet to be revealed which blockchain the government plans to use and to what extent. The Seoul Metropolitan Government previously constructed applications on ICON, a local blockchain network, but those applications were confined to smaller tasks such as document issuance.
In another development, the Ministry of Interior and Safety announced plans to issue digital residence cards to foreign nationals living in the country. The digital cards will be legally equivalent to their physical counterparts and can be used to access both public and private services. The ministry is collaborating with local banks to allow digital cards to be used for fintech services.
This move places South Korea among a growing number of governments that are exploring digital identity as a means of keeping up with the rapid digitalization of services. Qatar recently unveiled the ‘National Digital Authentication and Trust Services Strategy for 2024-2026,’ with a unified digital ID being one of its main features.
In another part of the world, Thaksin Shinawatra, the former Prime Minister of Thailand, is advocating for the legalization of digital assets and online gambling in the country. Shinawatra’s call comes in the wake of a new draft law that eases strict restrictions on casinos. Despite the restrictions, millions of Thais are engaging in gambling, contributing billions of dollars to the industry each year.
Shinawatra proposed that the government should adopt a similar approach to digital assets, which have been subject to strict regulations, albeit less so in recent years. He believes that, with the rise of Donald Trump to the U.S presidency, the prominence of digital assets globally is set to skyrocket, and he wants Thailand to be ready to reap the benefits. Shinawatra called on the SEC to consider “allowing the trade of stablecoin, or coins that are backed by assets…There will be no risk, it is just another currency in the world.”
Thailand is one of the world’s leaders in central bank digital currency (CBDC) systems and is a founding member of the mBridge pilot, which is developing a regional CBDC system for faster and cheaper cross-border payments. Other members include Hong Kong, the UAE, and China.
