The Terra Alliance uses payment solutions provider CHAI as its front-end. CHAI incorporates a mobile payments app which connects to 15 major local banks. Terra’s blockchain-based platform then sits in the background, linking payments to e-commerce sites.
Blockchain payment system and stablecoin issuer Terra has added South Korean music streaming platform Bugs to its e-commerce alliance.
As CoinDesk reported Aug. 14, there are now 25 partners in the Singapore-based company’s South Korea-focused payment ecosystem.
Terra co-founder Daniel Shin said that the platform is smoother than the legacy payment systems in South Korea, “The value chain for payments is convoluted. There are six or seven players, and everyone takes a cut. We streamline the process.”
Earlier this month, Terra announced a partnership with fashion platform Sinsang Market
South Korean regulatory uncertainty is a hindrance
Shin notes that regulatory clarity would be helpful for the cryptocurrency sector, explaining the difference between South Korea and the United States. In the U.S., if something is not illegal then it can be done. However, in South Korea, entrepreneurs should not attempt something unless it is specifically codified, according to Shin.
“Before, it was crypto ‘no’, blockchain ‘yes’”, he said. “Now it is more like blockchain ‘yes’, private crypto ‘yes’, public and listed crypto ‘no’.”
While regulators in the country may still view crypto assets with some skepticism, blockchain technology is enjoying adoption across various sectors with South Korea’s oldest bank recently announcing that it is building a blockchain-based security system.
Swiss Federal Council Continues to Monitor Stablecoins and Blockchain
The Swiss Federal Council is continuing to keep close tabs on global stablecoin projects and their possible opportunities and challenges.
Switzerland is seen as very crypto-friendly
In a press release on Oct. 16, the Swiss Federal Council stated that it was recently informed about “current opportunities and challenges associated with stablecoins” and that Switzerland will continue to monitor new digital technology developments, such as blockchain and distributed ledger technology.
The Federal Council states that, while the mountainous Central European country is generally seen as very crypto-friendly and “open to innovative approaches in the financial market”, it remains committed to addressing the risks related to stablecoins and cryptocurrencies, saying:
“The Federal Council is committed to ensuring that the currency and stability policy challenges, in particular, are addressed through international cooperation between governments, central banks and supervisory authorities, with private providers also included.”
The seven-member executive council further noted that Facebook’s Libra coin, which is to be overseen by the Geneva-based Libra Association, would be exposed to limited volatility thanks to being backed by a basket of stable fiat currencies.
Libra seeks Swiss payment license
Cointelegraph previously reported that the Libra Association – the governing body of Facebook’s eponymous stablecoin project – was required to obtain a payment system license from Switzerland’s Financial Market Supervisory Authority (FINMA) for Libra. The association’s head of policy and communications, Dante Disparte, said at the time:
“We are engaging in constructive dialogue with FINMA and we see a feasible pathway for an open-source blockchain network to become a regulated, low-friction, high-security payment system. This is an important step in Libra project’s evolution, and we look forward to continuing our engagement with all stakeholders over the coming months.”