The South Korean city of Seoul is developing its own cryptocurrency – the “S-Coin” – to be used in city-funded social benefits programs, says its mayor.

Mayor Park Won-soon announced the plan during an interview with CoinDesk Korea last week, where he also revealed that the city will create a fund to support the advancement of blockchain technology and related startups.

“As Seoul is the world’s leading city in the field of information and communications, including the Fourth Industrial Revolution, I think we should study new technologies such as blockchains,” he said.

Like Estonia, which is attempting to apply blockchain technology to all government administrative processes, Park thinks that the “blockchain can be applied to all bureaucratic administrations in Seoul, such as the public transport system system operated by Seoul City and the provision of youth allowance.”

Furthermore, Park indicated that the S-Coin could be used as a payment method for city-funded welfare programs for public employees, young job seekers and citizens helping the environment by saving electricity, water and gas.

To accomplish this, Park said the laws governing cryptocurrencies would need to be changed, adding that “in order to make an S-Coin, we need to prepare institutional and legal support such as bylaws,” he said.

Park also said he hopes to foster a blockchain ecosystem, saying: