A joint research initiative by Samsung and the Bank of Korea could successfully implement central bank digital currency (CBDC) based offline payments via Samsung Galaxy smartphones and smartwatches if all proceeds according to plan. On Monday, Korean media outlets said Samsung Electronics and the Bank of Korea would collaborate on developing an ecosystem for a CBDC. As a result, the company signed an official agreement with the central bank to conduct research in the domain of offline payments.
This is a continuation of the 2022 pilot project between the two organizations, centering on CBDC technology enabling device-to-device transfers via near-field communication (NFC). The new initiative aims to circumvent obstacles like more network connectivity in South Korean internal locations. This is also an endeavor to undermine the use of credit and debit cards and cash in the country.
Samsung Galaxy Phones Will Enable Offline Transactions
According to The Korea Times, Samsung stated that the research would concentrate on minimizing security issues in offline payments made using Galaxy smartphones and smartwatches. The senior deputy governor of the Bank of Korea, Lee Seung-heon, stated,
“We look forward to Korea continuing to lead the way in offline CBDC technology, which is being actively researched by global central banks.”
Nonetheless, the crypto market community is fundamentally opposed to implementing CBDCs, which are also founded on blockchain, the technology underlying cryptocurrencies.
