Tech giant Samsung Electronics has reportedly partnered with South Korea’s central bank to conduct research into central bank digital currency (CBDC) for offline payments.
On May 15, Bank of Korea (BOK) and Samsung signed a Memorandum of Understanding (MOU) for offline CBDC research, according to local media KBS World. The collaboration will lead both parties to seek CBDC offline capabilities issued by the central bank.
Samsung also participated in the second phase of the BOK’s 10-month CBDC simulation experiment. research, which concerned the retail use of CBDCs. The first stage of BOK’s CBDC research tested basic functions such as issuance, distribution and redemption of CBDCs.
The latest MoU aims to test South Korea’s CBDC’s potential to conduct remittances and payments using Near Field Communication (NFC) on Samsung mobile devices instead of the internet. Samsung Electronics Vice President Won-Joon Choi revealed that the collaboration has enabled the tech giant to apply Samsung’s high-level security technology to the field of digital currency. He added:
“Based on the cooperation between the two companies, we hope we can make a great contribution to the development of global offline CBDC technology.”
As part of the collaboration, Samsung would have got material certification for level 6+ of Security International Common Criteria Evaluation Assurance.
Related: Korean Blockchain Experts Seek Government Help for Digital Asset Market
Despite strong interest in CBDCs, Samsung recently banned employees from using generative artificial intelligence (AI) tools like ChatGPT on all internal Samsung-owned devices and networks.
As Cointelegraph previously reported, Samsung introduced the policy after a staff member uploaded “sensitive code” to the platform. An internal memo addressing the matter said:
“Headquarters is reviewing security measures to create a secure environment to safely use generative AI to improve employee productivity and efficiency.”
Banking giants, including JPMorgan, Bank of America, Goldman Sachs and Citigroup, have also restricted the use of generative AI tools.
