South Korea tests VAT refunds on stablecoins with Avalanche and Mastercard

One of the largest banks of South Korea, NH NongHyup, announced the launch of a pilot project aimed at testing the NDS refund system. for tourists using stablecoins and automation based on smart-contracts. This project is implemented in collaboration with such technological giants as Avalanche, Fireblocks, Mastercard and Worldpay, which makes it one of the largest Experiments in the field of digital payments and blockchain-infrastructure.

target project

The main objective of the pilot project is to investigate the possibilities offered by modern Blockchain-technology for optimizing the process of returning NDS. Traditionally this process is considered complex, slow and overloaded with bureaucracy. The new model involves the use of stablecoins and automated calculations, which will allow:

- Shorten processing time Refund: thanks to automation and fast confirmation of transactions.
- Reducing the role of intermediaries: which will reduce costs and accelerate the process.
- Reduce operational costs: due to query procedure.
- Enhance transparency and accuracy of payments: due to the immutability of data in the blockchain.
- Expect a more convenient user experience for tourists: which will make the return process more accessible and understandable.

Role project participants

Each of the technological partners brings its own unique contribution to the realization of the project:

- Avalanche Provides high-performance blockchain-infrastructure, ensuring fast confirmation of transactions and low commissions.
- Fireblocks is responsible for the security of storage and management of digital assets, which is critically important for protecting user data.
- Mastercard provides integration of traditional payment systems and compatibility with existing financial standards, which Allows to easily adapt the system to already existing processes.
- Worldpay participates in the processing of commercial transactions and the connection of trading points with the system of stablecoin-calculations, which makes the process More convenient for business.

Combining solutions from the world of blockchain and traditional payment systems creates a model for the potential mass adoption of digital tax services.

Preimushchestva stablekoin-podkhoda

The use of stablecoins in the NDS withdrawal system could significantly change the international practice of serving tourists. Main advantages of this approach include:

- Instant payments to visitors: allowing tourists to receive their payments faster money back.
- Absence of need to exchange currency: which simplifies the process and reduces additional costs.
- Minimization of risks: related to fluctuations in currency rates, which makes the system more predictable and reliable.

Thus, the pilot project NH NongHyup, in collaboration with leading technology companies, opens new horizons for The use of blockchain-technology in the field of tax services can become a model for other countries striving to improve their experience. service of tourists.