Samsung Electronics and the Bank of Korea have announced their joint research initiative for a Central Bank Digital Currency (CBDC) for offline payments. This initiative is a reflection of the pilot project initiated in 2022 between the two parties, centered around CBDC technology. This technology allows the data to be transferred from device to device using Near Field Communication (NFC). The new initiative is thought to be beneficial for regions with a low or inadequate connectivity, or where card and cash payments are often employed.
The research at hand will focus on devising methods that minimize security issues with offline payments made through Samsung devices like Galaxy smartphones and smartwatches. The Korea Times reported Lee Seung-heon, Senior Deputy Governor of the Bank of Korea’s pick-me up statement stating, “We look forward to Korea continuing to lead the way in offline CBDC technology, which is being actively researched by global central banks.”
The race to lead the CBDC revolution has pushed many countries to develop their own digital assets. South Korea, being one of them, has been proactive in initializing various schemes and pilot projects in order to be at par with other global giants. Researches such as this are intended to boost the economy’s transition from traditional banking services to digital-based solutions.
The development of CBDC technology for offline payments would potentially transform payment and financial markets. It provides a novel method for ensuring the security of network-unavailable transactions, thus eliminating the need for costly overhead. Additionally, transactions could be made instantly, promoting efficiency and cost reductions.
The centralized CBDC system, believed to be efficient, could be the solution that the financial industry has long been searching for. As with anything, the potential advantages have to be weighed against the potential costs and security risks. Nonetheless, this new collaboration aiming to create solutions in the digital financial ecosystem embodies a purpose that is sure to create a positive impact on the global economy.
Victoria Lopez
- 2023-05-15
Samsung and Bank of Korea Unite for CBDC Offline Payments
Samsung Electronics and the Bank of Korea will team up in a joint research initiative to develop Central Bank Digital Currency (CBDC) technology for offline payments. The primary goal of this venture is to devise methods to minimize security issues with payment processes on Samsung devices.
