Samsung Electronics and the Bank of Korea (BOK) have announced a partnership to conduct joint research, focusing on the development of an offline payment system for a central bank digital currency (CBDC).
The South Korean tech giant Samsung Electronics and the Bank of Korea (BOK) have announced a partnership. They are joining hands to drive research and innovation in the domain of central bank digital currencies, also known as CBDCs.
This collaboration was formalized via a Memorandum of Understanding (MOU), signed at Samsung’s main base in Suwon, Gyeonggi Province. The venture will focus on the potential of the CBDC issued by the BOK and its application in the offline payment industry.
CBDCs are the digital equivalent of a country’s currency, directly issued by the central banks. This concept is gaining traction globally, with countries, including the United States, exploring the launch of their own CBDCs, with the objective of enhancing the transparency and security of transactions.
In a statement, Lee Seung-heon, deputy governor of the Bank of Korea, conveyed his optimism about the partnership, stressing that the co-development of offline CBDC technology with Samsung holds significant potential.
He expressed his vision of South Korea leading the evolution of offline CBDC technology, a space that central banks worldwide are eagerly exploring.
A notable focus of this collaboration will be the application of Samsung’s Galaxy smartphones and Galaxy Watch as instruments for processing payments, even in scenarios where online networks are compromised, such as during calamities.
This initiative builds upon Samsung’s previous involvement in a BOK-led CBDC pilot project where Samsung developed a technology to enable device-to-device transfers and payments without the need for an internet connection.
Choi Won-joon, Samsung’s Mobile eXperience executive vice president, highlighted the pivotal role of Samsung’s advanced security technology in the development of digital currencies. He credited the cooperation with the BOK as instrumental in the growth of global offline CBDC technology.
This announcement comes two years after Samsung expanded its support for third-party cryptocurrency hardware wallets, marking yet another significant stride in Samsung’s journey in the landscape of digital currency technology.