The administration of Mongolian capital Ulaanbaatar has teamed up with stablecoin firm Terra to offer a blockchain-powered payment system.
The payment service will be first trialled in Ulaanbaatar City’s Nalaikh District.
As part of the Nalaikh City pilot, Terra will enable peer-to-peer payments for instant transfer among users of various banks, as well as mobile payments.
Initially, Terra’s stablecoin will replace the method of paying utility bills and government subsidies.
The pilot will launch within six months. Furthermore, plans are on to gradually extend the pilot to other regions across the city.
Nalaikh District governor Radnaabazar Choijinsambuu said: “We believe this pilot programme with Terra will reform how the people of Nalaikh City make everyday payments.
“It will contribute to the development and enrichment of the nation’s digital payment infrastructure, while creating a new online platform to easily share information and offering great opportunities to connect with our citizens through advanced technology.”
A task force comprising players from Terra, Nalaikh District and fintech firm XGround will monitor the initiative.
Terra co-founder Daniel Shin said: “Facilitating P2P and recurring utility payments with Terra are important first steps towards building a blockchain-based financial infrastructure in Mongolia. From there, we will build out a wider range of financial services, reforming the remittance, loan, and overall banking industry.”