Both Samsung and South Korea’s central bank will work together to study how the country’s digital currency can be used for offline payments.
Samsung Electronics has teamed up with South Korea’s central bank to study the use of digital currency issued by the bank for making offline payments.
According to KBS World, on May 15, the Bank of Korea (BOK) and Samsung signed an agreement to collaborate on researching offline central bank digital currencies (CBDCs). They will focus on exploring how the CBDC issued by the central bank can be used for offline transactions.
Samsung also took part in the BOK’s second phase of the CBDC simulation experiment, which focused on studying the retail use of CBDCs. In the first stage of the research, the BOK examined fundamental features of CBDCs like issuance, distribution, and redemption.
Samsung Electronics and the Bank of Korea sign an MOU for CBDC research on offline payments. Source: samnews24.com
The new MOU aims to explore the possibility of using South Korea’s CBDC for remittances and payments through near-field communication (NFC) on Samsung mobile devices, without relying on the internet. Vice President Won-Joon Choi of Samsung Electronics mentioned that the collaboration allows the company to bring its advanced security technology to the digital currency sector. He further stated:
“We believe that our collaboration will greatly contribute to the advancement of offline CBDC technology on a global scale.”
As part of the partnership, Samsung has reportedly received certification for the security of its hardware, meeting the highest international standards in terms of security requirements.
Even though there is significant interest in CBDCs, Samsung has recently prohibited its employees from using generative artificial intelligence (AI) tools such as ChatGPT on any Samsung-owned devices and internal networks.
As we mentioned before, Samsung implemented this policy after an employee uploaded a code that was considered sensitive. An internal memo was issued to address this issue, stating:
The headquarters is currently evaluating security measures to ensure a safe environment for employees to use generative AI tools, which will enhance their productivity and efficiency.
Major banks such as JPMorgan, Bank of America, Goldman Sachs, and Citigroup have also placed limitations on the use of generative AI tools.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
