Samsung Partners with Bank of Korea to Research on Offline CBDC Payment
On Monday the Bank of Korea signed a partnership agreement with the tech giant Samsung to conduct extensive research on Central Bank Digital Currency (CBDC) for offline payment. The memorandum of association (MoU) was closed at the Samsung head office in Suwon Gyeonggi Province.
A report captured in the Korea Herald revealed that the BOK and Samsung will conduct joint research to evaluate the benefits, risks and threats of using CBDC for offline payment. According to the Korean regulation the BoK is mandated to facilitate the issuance of the CBDC.
The commendable efforts made to develop the Korean CBDC position the country among countries seeking to develop transparently and secure digital transactions.
Samsung Partnership with Bank of Korea
Reportedly to boost the performance of the CBDC security the Samsung team obtained the hardware certification approval for the security international common criteria (CC) and evaluation assurance level (EAL) grade six.
Speaking at the event the Deputy Governor of BoK Lee Seung-heon applauded the efforts made by the apex bank and Samsung to launch the first offline technology for CBDC. He believes that Korea leads other countries in examining the suitable feature for offline CBDC technology.
In 2022 the tech company supported the BoK to launch the pilot test for CBDC that lasted for 10 months. At the preliminary experimental of CBDC for retail use, the BoK launched offline tools for digital currency. Before then the BoK team had experimented the performance of CBDC features such as issuance, redemption and distribution.
Korea CBDC Pilot Project
The BoK team announced that the offline payment tools centred on the CBDC aimed at supporting device-to-device transfers and streamlining all payments done on near-field communication (NFC). The team behind the NFC development integrated unique features to monitor transactions that are conducted when the sender and recipient are offline.
The efficiency of the NFC technology was supported by chipsets developed by the Samsung team. A chipset is a device integrated into the mobile phone to improve the security and privacy of the gadget.
As a result, the new partners plan to allow Samsung users to make payments through their Galaxy smartphones and watches with or without network connectivity. The offline payment feature will enable the user to use the digital currency even when struck by catastrophic events such as natural disasters.
A report from the vice president of Samsung Mobile eXperience vice president Choi Won-Joon revealed that the tech company security tools will bolster the operation of the Korean CBDC. He expressed his delight to collaborate with the apex bank of Korea to launch the offline payment method on CBDC.
Samsung Involvement in CBDC Development
Won-Joon believes that the cooperation between Samsung and BoK will stimulate growth for offline digital currency tools. Besides supporting the BoK to attain the CBDC objective Samsung create third-party hardware crypto wallets such as the Ledger Nano S and Nano X. These crypto wallets were integrated into the Samsung Galaxy smartphones to expedite payment process.
Besides Samsung’s efforts to adopt emerging technologies such as crypto, the tech company has been against the use of artificial intelligence (AI). A few days ago Samsung management adopted restrictive measures to prevent the employees from using AI tools such as ChatGPT on the Galaxy mobile phones. The staff were banned from using AI generative tools to complete their tasks.
The prohibitive measures were adopted after an employee utilized the AI tools to share a sensitive code that resulted in ethical concerns. The Samsung head office shared an official memo stating that the action taken by the staff compelled the management to review the existing security measures. The memo explained that the Samsung team plans to create a friendly approach to allow the staff to be more productive when using the AI devices.
Following the Samsung announcement, other industrial heavyweights such as JPMorgan Chase, Citi Group and Goldman Sachs adopted restrictive measures to use AI.
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