On May 15, 2023, Samsung Electronics and the Bank of Korea (BOK) signed a memorandum of understanding (MOU) to form a strategic partnership to conduct extensive research on offline capabilities of the central bank digital currency (CBDC) for payments.
According to a report from local media, Samsung’s involvement will be in the second phase of the BOK’s 10-month CBDC simulation experiment, which focuses on the retail utilization of CBDCs. The initial phase of the BOK’s CBDC research involved testing fundamental features like issuance, distribution, and redemption of CBDCs.
The MOU focuses specially on evaluating the potential of the South Korean CBDC to facilitate remittances and payments using near-field communication (NFC) on Samsung mobile devices. The objective is to explore the feasibility of conducting transactions offline without relying on internet connectivity. With the collaboration, both Samsung and the BOK aim to reduce security risks associated with offline payments made through Samsung’s smartphones and smartwatches, ensuring that payment transactions remain viable even in scenarios where internet connectivity is unavailable, such as during disasters.
Won-Joon Choi, Vice President of Samsung Electronics, emphasized the significance of this partnership in integrating Samsung’s advanced security technology with digital currencies. Choi expressed optimism about the progress they can achieve in advancing global offline CBDC technology through the joint efforts of both companies.
This recent development builds upon the pilot project initiated in 2022 by Samsung Electronics and the Bank of Korea. The pilot project focused on leveraging CBDC technology to enable device-to-device transfers using near-field communication (NFC).
In a separate development, DeFi Planet reported that the Romanian government introduced an AI-powered robot named ‘Ion’ to help it better understand the societal challenges its citizens face. The AI-powered robot is designed to collect and analyze data from various sources, including social media, government databases, and surveys. This data will then be used to help the government develop policies and programs that address the needs of its citizens.
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