South Korea issues digital IDs secured by blockchain

South Korea is testing a digital identity card that digitizes a system that has been used for nearly six decades, with blockchain being used to enhance security.

According to local reports, the new digital identity will be tested in nine regions, including the cities of Sejong and Yeosu and Geochang and Yeongnam counties. It will be available to all residents in these regions aged 17 or older.

The new system digitizes a national ID card system that has been in use since 1968. However, in 2021, the South Korean government introduced three new digital identification cards: a mobile driver’s license, a veterans’ registration card and an overseas ID card.

Digital IDs are becoming increasingly popular globally as more governments continue to digitalize their services. However, cybersecurity remains a daunting challenge. With identity linked to virtually every facet of the citizens’ daily lives, governments must ensure that it’s adequately protected in an era where AI is pushing cybercrime to new levels.

In South Korea, the government will rely on advanced encryption and blockchain technology to enhance security, local reports say. It’s unclear which blockchain the government intends to use and to what extent. Previously, the Seoul Metropolitan Government built applications on ICON, a local blockchain network, but the applications were limited to smaller tasks like document issuance.

In a separate announcement, the Ministry of Interior and Safety revealed that it would also issue digital residence cards for foreign nationals residing in the country. The new cards will have the same legal validity as their physical counterparts and can be used to access public and private services. The ministry is working with local banks to permit digital cards to be used for fintech services.

The ministry added that foreign nationals whose residence cards were issued before January 1, 2025, must visit an immigration office for onboarding. However, cards issued this year come equipped with an integrated circuit chip that allows holders to easily set up their digital identity on a mobile app.

South Korea joins several other governments that are exploring digital identity to keep up with the rapid digitalization of most services. Recently, Qatar launched the ‘National Digital Authentication and Trust Services Strategy for 2024-2026,’ and a unified digital ID is one of its pillars.

In Afghanistan, the digital ID known as e-Tazkiras has blown up over the past year, with more than 15 million Afghanis now enrolled. This week, the government announced that it was setting up new centers for enrollment as the number of applicants was off the charts. In Nigeria, the government has set an ambitious target of 180 million digital IDs by the end of 2026, which would be a 100% enrolment in an initiative supported by the World Bank.

Thailand’s former PM wants digital assets legalized

Thaksin Shinawatra, the former Prime Minister of Thailand, has called on the Thai government to legalize digital assets and online gambling.

Shinawatra spoke at an event following the passing of a new draft law that loosens the strict restrictions on casinos. Despite the restrictions, millions of Thais have been engaging in gambling, with estimates showing billions of dollars go into the industry each year.

Shinawatra believes that the government should adopt a similar stance towards digital assets. Similar to gambling, the government has been stringent with the sector, although the restrictions have been reduced in recent years. Earlier this month, the government proposed legalizing digital asset payments in the tourist area of Phuket. The securities regulator has also proposed legalizing digital asset spot ETFs.

Shinawatra noted that with the ascent of Donald Trump to the presidency of the U.S., digital assets’ prominence globally will skyrocket, and he wants Thailand to position itself to benefit. He 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.”

Shinawatra served as the Prime Minister of Thailand from 2001 to 2006. While he has since retired from active politics, he holds great sway in running the country with his daughter, Paetongtarn Shinawatra, the current PM.

Thailand has one of the most advanced central bank digital currency (CBDC) systems globally. It’s also a founding member of the mBridge pilot, which is building a regional CBDC system for faster and cheaper cross-border payments among members, who include Hong Kong, the UAE, and China.

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