Samsung and the Bank of Korea are working together to develop offline CBDC technology that can enable secure and reliable transactions using digital currency on Samsung devices with NFC.
In a strategic pivot toward the future of finance, South Korean technology giant Samsung has partnered with the Bank of Korea (BOK) to enter the field of Central Bank Digital Currencies (CBDCs.
The partnership aims to use blockchain and distribute central bank-issued digital currency, a rising global trend.
Furthermore, Samsung and BOK signed a memorandum in Suwon to advance CBDC research and improve offline payments.
This collaboration can be traced back to the tech giant’s participation in the BOK’s second phase of a CBDC pilot study. Even without an internet connection, Samsung facilitated transfers and payments between devices using near-field communication (NFC).
Exploring offline capabilities of CBDCs
Together with Samsung, the Bank of Korea is determined to delve into the offline capabilities of CBDCs in greater depth. The BOK’s 10-month simulation CBDC research, with Samsung’s contribution, studied the retail application of these digital assets
Initially, the study examined fundamental aspects, including the issuance, distribution, and redemption of CBDCs.
The memorandum tests South Korea’s CBDC for offline NFC remittances and payments on Samsung devices.
Won-Joon Choi, vice president of Samsung Electronics, expressed his optimism regarding the alliance, stating, “Based on cooperation between the two companies, we expect to be able to make a great contribution to the development of global offline CBDC technology.”
Ensuring secure transactions with high-level security technology
Samsung has secured hardware certification for the security international common criteria evaluation assurance level six grade to provide secure transactions.
The certification also covers seven security levels and is the highest. It is essential for safe digital transactions and user trust in the new currency.
The Memorandum of Understanding between Samsung and the Bank of Korea represents a vital step toward the realization of secure wire transfers and payments using digital currency issued by the central bank.
This innovative form of transaction will be accessible on Samsung Galaxy smartphones and smartwatches, heralding a possible revolution in how transactions are conducted.
This partnership between Samsung and the Bank of Korea is a significant step toward realizing offline CBDC technology’s global potential. It could also set the standard for the future of digital finance by guaranteeing the security of transactions even without an internet connection.
