Samsung Collaborates with Bank of Korea to Explore Offline Payments with CBDC
Samsung Electronics has partnered with the Bank of Korea (BOK) to conduct a joint study focused on developing innovative technologies for secure offline payments using South Korea’s central bank digital currency (CBDC).
This collaboration aims to leverage Samsung’s expertise in security technology and explore the potential of offline CBDC payments through the use of NFC chips on Samsung mobile devices. Let’s delve into the details of this partnership and its implications for the future of digital payments.
Samsung Electronics and the Bank of Korea recently signed a memorandum of understanding (MOU) to initiate a collaborative exploration of offline payments and remittances using the country’s CBDC. This partnership highlights the growing interest in harnessing the benefits of CBDCs for real-world transactions.
According to Won-Joon Choi, Vice President of Samsung Electronics, the company is eager to contribute its advanced security expertise to support global initiatives related to offline CBDC payments. Samsung plans to conduct tests on offline transfers by utilizing NFC chips integrated into their mobile devices, aiming to provide a seamless and secure user experience.
To facilitate this collaboration, Samsung has upgraded the security certification of its equipment to the sixth level, adhering to international evaluation criteria, specifically tailored for cooperation with the Bank of Korea. These rigorous security standards ensure the integrity and confidentiality of digital transactions. It is worth noting that international standards typically comprise seven levels of functional security requirements.
Samsung Group, one of South Korea’s prominent conglomerates, has actively invested in various blockchain projects, with a substantial $979 million allocated to the sector over the past year. This demonstrates Samsung’s commitment to exploring and capitalizing on emerging technologies that can shape the future of digital finance.
Meanwhile, the South Korean government is proactively working on accelerating the development of legislation pertaining to digital assets. Additionally, efforts are underway to establish a robust crypto tracking system that enables effective monitoring of digital assets. These initiatives reflect the country’s commitment to fostering a supportive regulatory environment for the growth and adoption of digital currencies.
The collaboration between Samsung Electronics and the Bank of Korea marks a significant step forward in exploring the potential of offline payments using South Korea’s CBDC. By leveraging Samsung’s expertise in security technology and integrating NFC chips on mobile devices, this partnership aims to enable secure and convenient transactions in offline settings.
As the adoption of CBDCs gains momentum worldwide, the joint study conducted by Samsung and the Bank of Korea sets an example of how industry leaders can work together to drive innovation in digital finance. By harnessing the power of technology and collaboration, South Korea is positioning itself at the forefront of the global digital payments landscape.