We have seen over the past few months that a lot of nations and governments are against cryptocurrencies and their applications, in fear of illegal activities and cybercrime. However, certain countries are very forward facing and very open about innovations, especially when it concerns digital currencies and the blockchain technology. This is the case with South Korea, which is one of the countries that with the biggest adoption rate in the world for Bitcoin and other virtual currencies, and is a nation where young people and young adults have shown huge interest in the crypto space.
Kakao, one of the largest internet and communication companies in the country and in the world, is making the headlines as it has announced that it will introduce cryptocurrencies on its KakaoPay application in the upcoming months. Customers will be able to spend, send and receive cryptocurrencies through their mobile device. Later on, the South Korean company plans to include cryptocurrencies on all of its applications.
This represents a huge opportunity for Kakao, but also for the cryptocurrency markets. The applications have millions of users and a lot of them do not know about digital currencies or have simply not adopted them yet. With this move, Kakao will effectively introduce crypto to millions of people, which in turn could positively impact the markets. In a country where coins and tokens are already popular, this could have a huge effect on the space as a whole. The company’s market penetration rate is estimated at 90% in South Korea.
In addition to this massive news, Kakao has also expressed its interest in the blockchain technology. The company is thinking of creating a new subsidiary with the purpose of creating applications based around the blockchain. The communication firm truly seems to understand the opportunities and potential of the technology and of the decentralized architecture. Furthermore, Kakao is also considering raising funds through an ICO, and therefore creating its own token. Many companies have raised a lot of money through ICOs and large well-known brands such as Kodak and Atari have launched their own token.
TLDR: Kakao, one of the largest communication company in South Korea and in the entire world is strongly interested in the world of cryptocurrencies and in the blockchain technology. The firm has announced that it will introduce cryptocurrency payments on KakaoPay and rumors that it is considering creating a blockchain-focused subsidiary company have surfaced.