In a landmark move, Samsung Electronics has collaborated with South Korea’s central bank, the Bank of Korea (BOK), to investigate the potential of offline payments using a Central Bank Digital Currency (CBDC).
A CBDC is a form of digital currency issued by a country’s central bank, intended to offer a digital alternative to physical cash. The ability to use CBDCs for offline payments can revolutionize digital finance, ensuring transactions even in areas with limited internet access.
On May 15th, the two parties formalized their collaboration with a memorandum of understanding (MOU), as reported by KBS World. The main focus of this partnership is to test the potential of South Korean CBDC to facilitate payments and remittances using Near-Field Communication (NFC) on Samsung mobile devices.
Won-Joon Choi, Vice President of Samsung Electronics, expressed excitement about the collaboration, emphasizing its potential to integrate Samsung’s advanced security technology into the digital currency field.
Samsung has, in fact, achieved hardware certification for the Security International Common Criteria Evaluation Assurance Level Six Grade, a testament to its commitment to security in the digital finance arena.
However, it’s worth noting that Samsung has recently adopted a stricter stance on AI use. It has banned employees from using generative AI tools like ChatGPT on Samsung-owned devices and networks after an incident involving the uploading of sensitive code. Despite the potential of AI to enhance productivity and efficiency, security remains a paramount concern for the tech giant.