The Ulaanbaatar administration began partnering with blockchain company Terra to replace existing payment methods for utilities and government payments with a stablecoin-based payment system..
A South Korean cryptocurrency startup specializing in instant funds transfer and lending services will participate in the development of a pilot program over the next six months. Originally innovative payment solution will be launched in the Nalaikh region, and then it will be scaled to the entire Ulaanbaatar.
The pilot program starts with two main features: peer-to-peer payments, which allow instant transfers between users of different banks, and mobile payments, to create infrastructure for secure contactless payment. Terra will work with local governments to integrate its own stablecoin into internal government settlement systems.
The initiative is part of the national economic development and growth program. The implementation process will be monitored by a special task force, which will include representatives of the district administration and the fintech company XGround.
This is not the first cryptocurrency initiative in the country. Earlier, the Bank of Mongolia allowed the local mobile operator to launch its own virtual currency.
While Mongolia fosters the crypto industry, neighboring China continues to tighten regulations. There was recently approved position, obliging the blockchain company to disclose all information about users, as well as to fight against prohibited content.
text: Ivan Malichenko, photo: s-ec.bstatic
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