- This is a continuation of a pilot program begun in 2022 between the two organizations.
- The firm formalized its intentions to study offline payment systems by signing an agreement.
Central bank digital currency (CBDC) based offline payments using Samsung Galaxy smartphones and wearables are a potential outcome of a research project jointly undertaken by Samsung and the Bank of Korea.
Korean media outlets reported on Monday that Samsung Electronics and the Bank of Korea will collaborate. This would be on studies to establish a foundation for a CBDC. As a result, the firm formalized its intentions to study offline payment systems. By signing an agreement with the central bank.
This is a continuation of a pilot program begun in 2022 between the two organizations. Which used CBDC technology to facilitate NFC-based device-to-device transfers.
It is believed that the new endeavor would help South Korea get beyond drastic problems. Like its interior areas’ lack of network access. This is another scheme to undermine the country’s reliance on card and cash transactions.
Moreover, according to The Korea Times, Samsung has said that the study’s primary objective is to find ways to improve the safety of offline payments conducted using Samsung’s Galaxy smartphones and smartwatches.
While CBDCs are built on blockchain technology. The same technology that underpins cryptocurrencies—the crypto market community is generally opposed to their adoption.
Recently, the usage of Central Bank Digital Currencies (CBDCs) in Florida is prohibited without legislative authorization, according to legislation that Governor Ron DeSantis of Florida approved.
This is especially pertinent since the federal government is now debating whether or not to issue a CBDC, which, according to its critics, would give it unparalleled control over the financial activities of its people.