Samsung Electronics and the Bank of Korea (BOK) have recently entered into a partnership to research Central Bank Digital Currency (CBDC) technology with the potential of enabling offline transactions. The collaboration aims to eliminate reliance on the internet and introduce smoother offline transactions for users. As the adoption of CBDCs is accelerating worldwide, this move marks a significant step towards the development of global offline CBDC technology.
This collaborative research will focus on promoting the forming of a CBDC system and enhancing the functionality of virtual money. Samsung Electronics had helped develop an offline CBDC technology, which makes transactions and payments between mobile devices via near-field communication without an online connection using Samsung’s security chip, the embedded Secure Element. This technology was tested in the Bank of Korea’s two-part mock testing of CBDC last year.
The partnership between Samsung Electronics and BOK will further their efforts to enable users to access transactions and payments through Samsung’s Galaxy smartphones and Galaxy Watch in situations where online networks cannot be accessed. This is an important step forward in the adoption and integration of CBDCs in the mainstream financial and technological landscape.
Choi Won-joon, executive vice president and head of the mobile research and development office at Samsung’s Mobile eXperience division, said the collaboration could propel “the growth of global offline CBDC technology.” With more countries and central banks exploring and testing their own digital currencies, the need for reliable and secure offline transaction systems has become glaringly apparent.
However, despite the rapid adoption of CBDCs worldwide, there are still lingering concerns about the technology. One of the primary issues revolves around privacy and security. As CBDCs rely on complex and sophisticated technology, risks of hacking and other cyber threats continue to loom. Privacy is another concern, as CBDCs could potentially provide central banks with unprecedented levels of access to individuals’ financial data.
These concerns have already led to action in some regions, with Florida recently banning the use of CBDCs as money within the state. However, innovations such as the collaboration between Samsung Electronics and BOK can address some of these concerns while steering forward the development of offline CBDC technology and its subsequent impact on the global financial landscape.
In conclusion, the partnership between Samsung Electronics and BOK is a significant move towards the growth of offline CBDC technology and highlights the potential of these digital currencies to reshape the future of financial transactions. While concerns about privacy and security persist, further development and collaboration within the industry can help mitigate these risks and bring about steady advancements in the sphere of CBDCs.
Source: Cryptonews
