The Bank of Korea and Samsung Electronics teamed up on Monday to develop the central bank’s digital currency technology that enables transactions without Internet access.
The two sides signed a memorandum of understanding at Samsung’s headquarters in Suwon, Gyeonggi province, to strengthen their partnership in developing CBDC, a form of central bank-issued digital currency, as well as a solution for offline transactions. using virtual money.
Samsung Electronics participated in the two-part CBDC mock trial conducted by the BOK last year. It developed an offline CBDC technology that enables transactions and payments between mobile devices via near-field communication without an online connection, using the tech giant’s security chip, called Embedded Secure Element.
The two parties will continue to work to enable users to access transactions and payments through Samsung’s Galaxy and Galaxy Watch smartphones, even in disaster situations when the online network cannot be accessed.
Bank of Korea Vice Governor Lee Seung-heon and Choi Won-joon, executive vice president and head of mobile research and development office of Samsung’s Mobile eXperience division, attended the event.
“It is significant that (the BOK) was the first to introduce offline CBDC technology with Samsung Electronics,” Lee said. “We hope that Korea can take the lead in offline CBDC technology through this MoU, as central banks around the world are actively working on it.”
“We were able to apply Samsung Electronics’ advanced security technology in digital currency through cooperation with the BOK,” Choi said. “Through the cooperation of the two parties, we can attribute the growth of global offline CBDC technology.”