February 21, 2024

Central bank digital currencies, or CBDCs, are gaining attention as a potential solution for modernizing global payment systems. Unlike traditional currencies, CBDCs are digital assets issued and backed by central banks.

Samsung Electronics and the Bank of Korea — South Korea’s central bank —will cooperate Central Bank Digital Currency (CBDC) Research for Offline Payments. The two organizations participated in the recent signing ceremony of the Memorandum of Understanding (MOU) at the Samsung Digital City in Suwon.

This is the second time Samsung has participated in research conducted by the Bank of Korea, the first being a 10-month CBDC simulation experiment aimed at studying the use of CBDC in the retail industry. The first phase tests the functions at the basic level, including the issuance, distribution and redemption of CBDC.

The latest research will test the ability of South Korea’s CBDC to manage remittances and payments using near-field communication (NFC) inside Samsung mobile devices without using the internet. All transactions take place within the embedded secure element (eSE) of Samsung mobile devices.

To further enhance security, Samsung has Obtain hardware certification Security International Common Criteria CC (Common Criteria) EAL (Evaluation Assurance Level) level 6+.

“We have developed the first offline CBDC technology for the central bank together with Samsung Electronics, which is very meaningful. I look forward to going out,” said Lee Seung-heon, deputy governor of the Bank of Korea in a statement.

Vice President Choi Won-jun, Head of Development at Samsung Electronics’ Mobile Experience (MX) Division, also added, “Through the cooperation with the Bank of Korea, we are able to apply Samsung Electronics’ advanced security technology to the digital currency venue. Based on the cooperation between the two companies , we expect to make a great contribution to the development of global offline CBDC technology.”

With physical paper money dwindling around the world, it’s no wonder that many governments around the world are exploring the use of digital currencies.