The oldest, the most known and important mileage point program in South Korea may convert its cash points into cryptocurrencies. The company behind OK Cashbag, SK Telecom, is working on this plan.
Cashbag was launched back in 1999 so as to reward users buying goods and services from SK affiliated merchants. During an interview, SK Planet commented about its plan to tokenize cash points and work on a blockchain system.
One of the main aspects of the company is creating a stablecoin, which will maintain a fixed value. It is important to mention that the points are tied to the Korean won.
The bid is called OKX and will be subject to further research before launching on the market. This is a very important development because of the number of merchants that accept the usage of OK Cashbag points.
At the moment, the program has over 35 million users and more than 50,000 different affiliated merchants stores. Additionally, users can exchange points for cash if they have more than 50,000 points. The company did not provide detailed information about the reserves it has, but they hinted that its system could be worth more than $100 million dollars.
Additionally, the report explains that SK Planet’s move may run into regulatory hurdles if the company finally decides to implement the project and launch it to the market.
At the moment, OK Cashback’s cash point system is categorized as ‘prepaid electronic payment means,’ Firms that offer these services should have an approval from South Korea’s Financial Services Commission.
It will be of importance to follow the decision of the South Korean government on cryptocurrencies and Initial Coin Offerings (ICOs). It also remains to be seen whether SK Planet’s plan will receive approval to operate under the Electronic Financial Transactions Ac mandate.