The company behind OK Cashbag, the oldest and most well-liked mileage purpose program in Republic of Korea, is mulling a thought to convert money points accumulated by its users into cryptocurrency.
Operated by SK Planet, the e-commerce arm of communication large SK medium, OK Cashbag was launched in 1999 to reward users World Health Organization purchased product and services from SK attached merchants. In associate degree interview with CoinDesk peninsula, SK Planet same a thought to introduce a blockchain system to tokenize money points had been shared with the company's superior management.
One side of the set up would involve the creation of a questionable stablecoin, or a cryptocurrency that maintains a set worth, only if the points in question square measure tied to the Korean won.
While the bid – quickly referred to as OKX – is subject to more analysis earlier than any formal debut, it is a notable development given the present user base of OK Cashbag and therefore the range of merchants that settle for the usage of OK Cashbag points.
According to the report, the program currently has over thirty five million users with quite fifty,000 attached bourgeois stores wherever shoppers will pay their rewards. they'll additionally exchange points for money if they earn quite fifty,000 points.
And, whereas SK Planet couldn't calculate the precise quantity of its reserve, the corporate told CoinDesk peninsula that the overall quantity of points among its system might be value quite $100 million.
More generally, the report additionally indicated that SK Planet's move might run into regulative hurdles notwithstanding the corporate decides to roll out the initiative.
According to the report, OK Cashback's money purpose system is presently classified as "prepaid electronic payment means that." companies giving this kind of service should acquire approval from South Korea's money Services Commission.
Since the Republic of Korea government has however to pass a legal framework for cryptocurrencies, it remains to be seen whether or not SK Planet's set up can receive approval underneath the Electronic money Transactions Act mandate, the report same.
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