The technology conglomerate has entered into a partnership with the Bank of Korea for the CBDC research project to find its use cases for offline payments.
Bank of Korea’s central bank digital currency (CBDC) has reportedly generated interest from the global technology company Samsung. The conglomerate would delve into CBDC research to explore offline payments with the same. A memorandum of understanding (MOU) was recently agreed upon between the Bank of Korea and Samsung on the concerned collaboration.
Earlier, Samsung had also been a participant in the Bank of Korea’s simulation experiments for its CBDC research. In the initial part of the experiments, aspects of issuance, redemption, and distribution were explored by the central bank.
“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,” said the Vice President of Samsung Electronics, Won-Joon Choi.
He was referring to the latest MOU of CBDC research, which would explore how the CBDC conducts payments and remittances using devices of Samsung having near-field communication (NFC). The entire use case of the CBDC research would be to enable payments between such Samsung devices without using the internet.
If the CBDC is successful in enabling such offline payments, it would be a game-changer in reducing security threats faced by devices connected to the internet. The Bank of Korea’s partnership with Samsung could generate a new benefit from such CBDCs, which could be helpful for payments In the future as well.