Samsung Electronics, the South Korean tech giant, has entered into a partnership with the Bank of Korea (BOK) for researching on a central bank digital currency (CBDC) for offline payments. As per a memorandum of understanding, both parties are studying the offline capabilities of CBDC issued by the central bank. The collaboration, which also included Samsung taking part in the ten-month CBDC simulation experiment research work, will look into the potential of the South Korean CBDC to perform remittance and payments using Near-field communication (NFC) technology on Samsung mobile devices without the need of the Internet.

Samsung Electronics obtained hardware certification for the Security International Common Criteria CC (Common Criteria) ‘EAL (Evaluation Assurance Level) 6 grade’ in the process. The VP of the company, Won-joon Choi, has claimed that the collaboration has enabled Samsung to apply its high-level security technology to the digital currency field. He further added that, “through the use of advanced authentication technology such as biometrics, it will be possible to make payments safely."

The international financial and banking sector is increasingly leaning towards CBDCs and the interest of Samsung corp in this space is an added indication. However, the tech giant recently prohibited its employees from using generative artificial intelligence (AI) like ChatGPT on all its devices and internal networks. JPMorgan, Bank of America, Goldman Sachs and Citigroup have also taken similar initiatives.

In conclusion, Samsung partnering with Bank of Korea for researching on CBDCs is an encouraging development for the digital currency sphere. With Samsung incorporating its advanced authentication technology, the space could get a secure system that could potentially be adopted by the governments of the world.



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