Danal, a South Korean based Fintech company, has launched a new feature through its commerce Division that will enable luxury Carline BMWs to be bought with its native cryptocurrency token Paycoin(PCI).
The Fintech company has partnered with Samchully Motors, a native motors dealership that focuses on BMW vehicle sales.
The announcement that came after the partnership revelation is the first development of its kind the country has seen. The country, however, is no stranger to the crypto community; it has exposure levels to cryptocurrencies that place it high in the global spectrum.
According to statements released by the firm’s spokesperson, its customers will be able to start and complete the acquisition of the BMW of their choice with ease and highly afforded convenience. Customers will execute the acquisition process through the firm’s proprietary PCI mobile app.
Cryptocurrency In South Korea
Cryptocurrency in South Korea has a high level of exposure. The country has been home to various service providers and crypto miners since early 2017.
In 2017, when the advent of the crypto age had just descended on us, the world’s citizens, cryptocurrency was perceived as just a novel and profitable means of payment and transactions. In the real sense of things, cryptocurrencies represent a slew of opportunities and innovation the industry will come to provide.
South Koreans seemed to have realized it beforehand as the country saw numerous young retail traders and investors transact actively in the crypto market space as early as 2017. The country’s crypto market surged massively then, putting its cryptocurrency market space amongst the world’s forerunners at the time.
In the later part of 2017, South Korea became the world’s third-largest cryptocurrency market place just behind the USA and Japan.
Since then, the country’s crypto market has fluctuated; its growth has aligned with Bitcoin’s price and valuation.
The country’s fluctuating market has experienced a correction and has resurrected with its fiat currency; the Korean won is now the third most utilized currency to trade Bitcoin and other alternative coins worldwide. Only the US dollar and the Euro has more utility than the won in the crypto trading market globally, according to Coinhills data.
Why Has The Korean Won’s Relevance Increased By So Much?
South Korea’s renewed relevance in the industry and maxed utility of its fiat currency globally can be attributed in parts to the COVID-19 pandemic.
The country’s market space started its realignment during the global lockdown. The lockdown provided young investors with capital and time globally, which enabled them to explore the cryptocurrency marketplace gradually and comprehensively. The capital available came in relief funds, and the free time came in the form of compulsory’ house arrest’ enforced to combat the pandemic.
South Koreans, which at this stage can be considered a significant part of the industry, caught on at the infancy stage of the growing crypto trend. Young retailers and investors, most of whom were facing difficulties resulting from the country’s increasing real estate prices and overly competitive market, diverted their attention to the cryptocurrency industry.
The massive injection of funds, time and apparent ‘desperation’ by young Koreans and the growth of the cryptocurrency industry during the pandemic are the factors that contributed to the high relevance of the country’s legal tender, the Korean won.
Increasing activities in the industry and the development of regulations and guidelines in the country have grown the relevance of the crypto industry and vice versa.