Mongolia Starts Off 2019 With Its Eyes On Crypto Payment Adoption
(Source: forbes.com)

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(Original link: forbes.com)

Besides the rise of Security Token Offerings, the trend that we might see grow in the blockchain space in 2019, is governmental involvement and experimentation with the technology. Over the past few months, governments, which were once skeptical of blockchain and the benefits it had to offer, have seen the potential of the technology in key governmental sectors and industries such as counterfeit money and forgery , healthcare , and even disaster relief .
Because the number of countries entering the cryptosphere increased throughout 2018, some people believe this trend will continue into 2019. If blockchain is going to secure mainstream adoption, then the only logical step would be the inclusion of countries and governments in the discussion as to how to bring the technology to the masses.
The Marshall Islands made headlines almost a year ago in February 2018, when the country announced plans to issue its own cryptocurrency to be circulated as legal tender along with the U.S. dollar. Malta also took huge strides towards making the island nation blockchain powered.
But Asia seems to be where most countries are hopping on the bandwagon, and where we can expect to see increased involvement in 2019.
China has been making strides towards nationwide blockchain adoption in recent months. Examples include: the Chinese Communist Party releasing a primer on blockchain technology and how to use it , the People’s Bank of China supporting the development of a blockchain based platform, and more.
South Korea is also facing a blockchain boom at the moment, and Iran is now experimenting with creating a national cryptocurrency.
Most recently, we are seeing a meaningful act from Mongolia in becoming the next country to try and enter the blockchain world. The country has just announced a partnership with Terra , a blockchain payment system that is backed by exchanges such as Binance and Houbi .
The program will launch with two features: a peer-to-peer payment system to allow transfer among users of different banks, as well as a mobile payment system. Currently they are working with the local government in Mongolia to replace traditional payment methods associated with utility bills and government subsidies with their stablecoin.
“From there, we will build out a wider range of financial services, reforming the remittance, loan, and overall banking industry,” told me Daniel Shin, co-founder of the company.
Daniel is also the founder of the $1.7 billion Korean e-commerce firm, TicketMonster. On the partnership Shin told me that it will further the vision of advancing the real life adoption of cryptocurrency, by “facilitating P2P and recurring utility payments, these are first steps towards building a blockchain-based infrastructure in Mongolia.”
Mongolia’s fintech market is growing , but is still in its early stages of growth after a nationwide crisis.
Mongolia’s financial system was previously largely cash-based, however, the country’s main banks have gone through significant changes in the past two years . In light of a new payment system law announced in September of 2018, Mongolia issued its first digital currency.
Mongolia’s central bank authorized a local telecom operator to issue the digital coin, which is now licenced as a state-approved financial instruction. Mobicom, also known as “Candy”, is “ considered a ‘non-cash payment instrument’ whose value is pegged to Mongolia’s fiat currency, the tugrik."
Mongolia's new blockchain payment solution will first launch in Ulaanbaatar City’s Nalaikh District through a pilot program, with plans to expand citywide.
"The blockchain pilot will reform how the people of Nalaikh City make everyday payments," said the governor of the district, Radnaabazar Choijinsambuu. "It will create a new online platform to easily share information, and offer great opportunities to connect with our citizens through advanced technology.”
Despite of the promise to connect yet another country to the new era, questions remain as to the vitality of such blockchain based projects. Investing in cryptocurrency, even though there is the promise of success and huge gains, is a risk no matter who you are or where you are located....

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