The collaboration with BOK is not the first time Samsung was exploring CBDC capabilities.
Samsung Electronics, the global technology leader, has teamed up with the central bank of South Korea, the Bank of Korea (BOK), to research the use of central bank digital currency (CBDC) for offline payments.
According to the local media outlet KBS World, on May 15th, BOK and Samsung signed a Memorandum of Understanding (MoU) to study the offline functionalities of a CBDC issued by the South Korean central bank.
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Samsung had previously been involved in the second phase of BOK's CBDC simulation experiment, which focused on retail CBDCs. The initial phase of BOK's research evaluated basic CBDC functions such as issuance, distribution, and redemption.
The purpose of the recent MoU is to test the potential of South Korea's CBDC to facilitate payments and remittances through near-field communication (NFC) on Samsung mobile devices, bypassing internet connectivity.
Samsung Electronics Vice President Won-Joon Choi expressed that the partnership enabled the company to apply its high-level security technology to digital currency. He commented:
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.
As part of the partnership, Samsung reportedly received hardware certification for the Security International Common Criteria CC (Common Criteria) "EAL (Evaluation Assurance Level) 6+ grade."
Despite its interest in CBDCs, Samsung recently prohibited employees from using generative artificial intelligence (AI) tools, including ChatGPT, on all company devices and internal networks.
In June 2022, Samsung was preparing to roll out the first-ever blockchain-related exchange-traded fund (ETF) dubbed Samsung Blockchain Technologies ETF in Asia that will be trading in HKD.
Samsung's collaboration with the Bank of Korea signifies a significant step in the development of offline CBDC technology, highlighting the potential of CBDCs beyond internet-based transactions.
