According to reports published by e27, Asia’s largest tech media platform on 11th of January, Ulaanbaatar, the capital city of Mongolia has collaborated with a stablecoin company in order to release money transfer and lending services.
The partnership has been conducted between the administration of Ulaanbaatar’s City and a South Korean blockchain company called Terra. The report outlines that the main aim of this collaboration is to replace the current payment methods used for utility bill and government subsidies with the Terra stablecoin.
There have been talks of launching this pilot programme in the next six months, and it slated to begin in the city of Ulaanbaatar’s Nalaikh District. There are plans in place to expand the service across the whole city. The article also says that the programme will be containing both peer-to-peer payments and mobile payments.
Terra is a stablecoin project which was co-founded by Daniel Shin who is the creator of South Korean e-commerce marketplace Ticket Monster. He said:
“Facilitating P2P and recurring utility payments with Terra are important first steps towards building a blockchain-based financial infrastructure in Mongolia… From there, we will build out a wider range of financial services, reforming the remittance, loan, and overall banking industry.”
The stablecoin project closed a $32 million funding round in August 2018, which saw participation from giants in the cryptocurrency platforms like Binance Labs, OKEx and Huobi Capital, as well as Polychain Capital. They already have a partnership with a South Korean messaging app giant KakaoTalk. This was concluded back in November of last year and is aimed at developing a blockchain-based payment system and creating a blockchain ecosystem that would allow a large number of people to use its services.
“We believe this pilot programme with Terra will reform how the people of Nalaikh City make everyday payments. It will contribute to the development and enrichment of the nation’s digital payment infrastructure while creating a new online platform to easily share information and offering great opportunities to connect with our citizens through advanced technology,” said Radnaabazar Choijinsambuu, Governor, Nalaikh District of the Capital City.
Back last fall, the Bank of Mongolia, the country’s central bank, had given permission to Mongolia’s largest mobile telecoms operator to issue its own digital currency.