To revolutionize how we make payments, Samsung Electronics and the Bank of Korea have teamed up to lead the research and development of offline central bank digital currency (CBDC) technology. The partnership aims to create a seamless offline payment system that eliminates the need for internet connectivity.
The two entities plan to conduct joint research to catalyze the development of a CBDC ecosystem that will provide secure and efficient offline payment options. The memorandum of understanding was signed on Monday at Samsung’s headquarters in Seoul, marking a significant milestone in the project.
Samsung’s involvement in the Bank of Korea’s CBDC project began with a pilot program in 2021, which was co-managed by blockchain platform Ground X. The tech giant has reportedly achieved a significant breakthrough in the successful development of offline CBDC technology, which utilizes Near Field Communication (NFC) wireless technology to allow devices to communicate directly with each other without an internet connection.
Samsung’s devices, including phones and tablets, are equipped with an Embedded Secure Element (eSE) chipset that provides a secure platform for CBDC transactions. The Pickool, a South Korean tech outlet, reported that the latest partnership between Samsung and the Bank of Korea would focus on enhancing security and minimizing threats in offline payments using Samsung Galaxy devices.
The Bank of Korea established a legal advisory panel in June 2020 to examine potential regulatory challenges associated with issuing a CBDC. With the growing interest in CBDCs globally, the outcomes of this collaborative research effort could shape future initiatives aimed at exploring and establishing cooperative pathways for the development of the global CBDC ecosystem.
Both Samsung and the Bank of Korea intended to explore further collaborative opportunities for developing a CBDC ecosystem internationally, building on the cooperation’s outcomes. Choi Won-Joon, executive vice president and head of R&D at Samsung Mobile, stated that the effort would enable Samsung to significantly contribute to developing offline CBDC technology in Korea and globally.
As the world moves towards a cashless society, the partnership between Samsung and the Bank of Korea is a step towards creating a secure and efficient payment system that will benefit consumers and businesses. With their combined expertise and resources, Samsung and the Bank of Korea are poised to lead the way in the development of offline CBDC technology
