Mongolia to Deploy Blockchain Payment System in Partnership with Stablecoin Startup Terra
Mongolia’s capital city of Ulaanbaatar will reportedly pilot a blockchain-powered system for instant money transfers and lending services.
Mongolia’s capital city of Ulaanbaatar has partnered with South Korean stablecoin startup Terra to launch a new blockchain-based payment system, Asian tech media platform e27 reported on Friday.
The program is scheduled to pilot within the next six months in Ulaanbaatar’s Nalaikh District, with plans to expand citywide. The initiative will offer blockchain-powered mobile payments and instant peer-to-peer (P2P) money transfers among users of different banks.
Reportedly, the project aims to eventually replace the current payment methods for utility bills and government subsidies with the Terra stablecoin. This will, in effect, reform the largely cash-based Mongolia infrastructure and power the next-generation payment network using blockchain as the driving technology.
“Facilitating P2P and recurring utility payments with Terra are important first steps towards building a blockchain-based financial infrastructure in Mongolia,” said Terra’s co-founder Daniel Shin. “From there, we will build out a wider range of financial services, reforming the remittance, loan, and overall banking industry.”
Nalaikh District governor Radnaabazar Choijinsambuu also commented on the initiative:
“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 in August 2018, Terra closed a $32 million funding round to support its stablecoin project. The venture, led by South Korean e-commerce marketplace Ticket Monster, won the backing of four of the world’s largest cryptocurrency exchanges — Binance, OKEx, Huobi and Upbit’s parent company Dunamu.
Last year, the Central Bank of Mongolia approved crypto-friendly legislation and gave permission to Mobicom, the country's largest telecoms operator, to issue its own cryptocurrency, dubbed Candy, whose value is pegged to Mongolia’s fiat currency, the tugrik.