North Korea's embrace of digital currency transactions is a fascinating and complex story, one that sheds light on the country's efforts to manage its foreign exchange reserves and promote financial inclusion. Through a network of e-payment apps, the authorities are providing real-time exchange rate information and enabling seamless transactions in both local and foreign currencies. This article delves into the intricacies of these apps, exploring their features, the underlying currency structures, and the implications for North Koreans' financial lives.

Unlocking the Power of North Korea's E-Payment Apps

Exploring the Diverse Ecosystem of Digital Payment Solutions

North Korea's digital payment landscape is a tapestry of various e-payment apps, each offering unique features and capabilities. Daily NK has obtained access to several of these apps, including "Apnal," "Saebyol," "Kangsong," "Manmulsang," "Chonsong," and "Narae." These apps are designed to facilitate real-time currency exchanges, enabling users to seamlessly convert between North Korean won, foreign currency won, and foreign currencies like the dollar, euro, and yuan.

Navigating the Complex Currency Structures

North Korea's currency management system is a unique and intricate one, with the country dividing its currency into the North Korean won (or "local won") and the "foreign currency won." The foreign currency won is a convertible currency that can be exchanged back into foreign currencies, setting it apart from the ordinary North Korean won. This dual-currency system is reflected in the e-payment apps, where users can top up their balances with either local or foreign currency and then use those funds for various transactions.

Bridging the Gap: Connecting E-Payment Apps with Physical Exchanges

The e-payment apps are designed to seamlessly integrate with physical currency exchange centers and designated refill sites. Users can top up their foreign or local currency balances at these locations and then immediately use the funds within the apps for various transactions. This integration allows for a more streamlined and convenient user experience, as North Koreans can easily access and manage their digital currency holdings.

Navigating the Complexities of Exchange Rates

The e-payment apps offer distinct exchange rates for the domestic won and the foreign currency won, reflecting the country's efforts to manage its foreign exchange reserves. According to the Jonsong app's daily exchange rate list, the purchase price of the domestic won was 6,900 won to the dollar, while the selling price was 7,200 won as of May 22, 2023. For the foreign currency won, the purchase price was 110 won to the dollar, and the selling price was 113.3 won. This differential pricing system is designed to encourage the use of foreign currency won while restricting the direct circulation of foreign currencies.

Unlocking the Full Potential of E-Payment Apps

The e-payment apps offer a range of functionalities beyond just currency exchanges. For example, the Saebyol app allows users to pay various bills, including water bills, traffic fines, parking fees, and building usage fees. The Narae app, which is developed by North Korea's Foreign Trade Bank, offers an even broader range of convertible foreign currencies, including the yen, pound, ruble, Swiss franc, and Canadian dollar. These expanded capabilities demonstrate the authorities' efforts to promote the widespread adoption of digital payment solutions and integrate them into the daily lives of North Koreans.

Navigating the Complexities: A User's Guide to Foreign Exchange in the Apps

Using the e-payment apps for foreign currency transactions is a straightforward process. Users simply need to enter the payment amount, select the desired foreign currency type (such as dollar, euro, or yuan), and the app will automatically calculate the corresponding foreign currency won price based on the exchange rate presented. This seamless integration allows North Koreans to easily manage their foreign currency holdings and conduct transactions without the need for physical cash exchanges.In conclusion, North Korea's embrace of digital payment solutions represents a significant shift in the country's financial landscape. By providing real-time exchange rate information and enabling seamless transactions in both local and foreign currencies, the authorities are promoting the use of e-payment apps and efficiently managing the public's foreign currency holdings. As North Korea continues to navigate the complexities of its currency management system, these digital payment solutions will undoubtedly play an increasingly important role in the daily lives of its citizens.