A cashback program called OK Cashbag is one of the most popular companies in South Korea, and it accumulates shopping points at department stores and Starbucks. Recently, the firm decided to covert the cash points into cryptocurrency.
OK Cashbag is operated by one of the largest conglomerates SK Telecom, so people who consumed through its companies will get reward. The SK Telecom’s e-commerce department SK Planet claimed during an interview with Coindesk that they are planning to tokenize users’ points with a blockchain system.
Using the blockchain technology will promote the service securities and stable a fixed value of the coin. They will connect the cryptocurrency with the Korean won.
According to the amount of OK Cashbag users, the plan will help the company increase potential growth, competitiveness and development of space.
The report shows that the cashback program has exceeded 35 million users. If users collected over 50,000 points, they can also convert it to cash points.
SK Planet told Coindesk that the total amount of points in the blockchain system could possibly exceed $100 million. This plan may encounter several regulatory barriers, but they have still decided to go ahead with it.
Since the cash points system in OK Cashback belongs to the “prepaid electronic payment means”, they have to wait for approval from the Financial Services Commission of government. According to the report, the idea about converting cash points to cryptocurrency has not passed yet.