In an ambitious move towards digital transformation, South Korea is trialing a digital identity card system, leveraging blockchain technology to magnify the security. The system, which is expected to be tested in nine regions, including Sejong, Yeosu, Geochang, and Yeongnam, will digitize a national ID card system that has been functioning since 1968. This initiative will be accessible to residents aged 17 and above residing in these regions.
The South Korean government had previously introduced three digital identification cards in 2021, namely a mobile driver’s license, a veterans’ registration card, and an overseas ID card. The new digital identity card is set to join these existing digital IDs, reflecting the global trend of digitalizing governmental services.
However, the rapid digitalization brings about significant cybersecurity challenges. Governments worldwide are under increasing pressure to safeguard the identities of their citizens as AI propels cybercrime to unprecedented levels. To secure the new digital system, the South Korean government has reportedly turned to advanced encryption and blockchain technology, though no specific details have been shared about which blockchain will be utilized and to what extent.
In parallel to this, the Ministry of Interior and Safety has announced its plans to issue digital residence cards for foreign nationals living in South Korea. These digital cards will carry the same legal validity as their physical counterparts and can be used to access both public and private services. The ministry is also collaborating with local banks to allow digital cards to be used for fintech services.
South Korea’s transition to digital identity systems aligns with initiatives being implemented by other governments worldwide. For instance, Qatar recently launched the ‘National Digital Authentication and Trust Services Strategy for 2024-2026,’ with a unified digital ID being one of its core focuses. Similarly, Afghanistan’s e-Tazkiras digital ID has gained popularity, enrolling more than 15 million citizens. Nigeria has set an ambitious goal to achieve 180 million digital IDs by 2026, an initiative backed by the World Bank.
In related news, Thaksin Shinawatra, the ex-Prime Minister of Thailand, has urged the Thai government to legalize digital assets and online gambling. This appeal came in the wake of a new draft law that eases restrictions on casinos. Shinawatra believes that the government should adopt a similar approach towards digital assets. He has encouraged the SEC to consider the trade of stablecoins or coins backed by assets, arguing that they pose no risk and should be treated as another currency in the world.
Despite his retirement from active politics, Shinawatra continues to influence Thai politics, primarily through his daughter, Paetongtarn Shinawatra, the current Prime Minister. It’s worth mentioning that Thailand has one of the most advanced central bank digital currency (CBDC) systems worldwide and is a founding member of the mBridge pilot, which aims to build a regional CBDC system for faster and cheaper cross-border payments. The members of this initiative include Hong Kong, the UAE, and China.
