New Blockchain country Mongolia will appear on the map
Terra, a blockchain company that creates the next generation payment system, has announced a partnership with the capital of Mongolia, Ulaanbaatar, to launch instant money transfer and lending services. Terra payment solution will be launched for the first time in the city of Nalaih, Ulaanbaatar district, as part of a pilot program, with expansion plans throughout the city. The program is to be launched within the next six months. The financial technology market in Mongolia is still in its early stages. However, a number of successful IPOs from local startups have recently been conducted, which demonstrate the growing potential of the market. In response to this success, the Government of Mongolia has introduced progressive regulations to promote innovation and fintech. Thus, the Central Bank of Mongolia approved the launch of the first national license for digital currency. With the support of the government, Terra aims to simplify and secure the payment process at the touch of a button and to provide other financial services such as fast and inexpensive money transfer and lending.
Mongolia: course on the blockchain country
The partnership aims to reform Mongolia’s cash infrastructure by providing more transparent and affordable digital payments. The pilot program in Nalaikh will be launched with two main features. First, peer-to-peer payments (P2P) will be available, allowing instant transfers between users of different banks. Secondly, mobile payments will be introduced to create a secure contactless payment infrastructure. As a next step, Terra will work with local authorities to replace the method of paying utility bills and government subsidies with its stable coin.
According to Daniel Shin, Terra co-founder, promoting P2P is an important first step towards building a blockchain-based financial infrastructure in Mongolia. From there, companies will expand the range of financial services, reforming the process of remittances, loans, as well as the banking industry in general. The governor of the Nalaikh district, Radnaabazar Choijinsambuu, believes that this pilot project will change the way the residents of Nalaikh make daily payments. Terra Company, created by a team of experts in business, finance and blockchain, is developing digital currency. According to the representatives of the organization, the coin will serve as the basis for the payment network of the next generation. Developers use a dual token model to fully ensure the stability of Terra with a decentralized asset and a second token called Luna.
Nalaikh city is located 36 km east of the capital Ulaanbaatar and has about 40,000 inhabitants. It is the first industrial center of Mongolia, which became home to the first state coal mining company since 1922. Today, the industry is still developing rapidly, and the city supports other growing sectors such as agriculture and consumer goods.
In support of the Government of Mongolia’s 2016-2020 Action Programme, which aims to revitalize the economy and promote growth, the city of Nalaikh focuses on improving Internet accessibility and making it financially accessible to its citizens.