Bank of Korea (BOK) has partnered with Samsung to revolutionize payments. As reported by KBS World, the South Korean central bank has signed a memorandum of understanding (MOU) with Samsung. 

Executives from Bank of Korea and Samsung Electronics at the MOU Signing Event
Executives from Bank of Korea and Samsung Electronics at the MOU Signing Event

The MOU, signed on May 15, investigates the potential of BOK’s central bank digital currency (CBDC) on Samsung phones. Users can execute payments and remittances by using near-field communication on these devices. The collaboration will explore offline CBDC and its functionality.

Samsung was involved in the second phase of the central bank’s CBDC simulation experiment research, which lasted almost a year. The second stage was centered on the retail use of CBDSs. The preliminary phase of the study focused on fundamental procedures, such as issuing, distributing, and redeeming CBDCs.

The head of development at Samsung’s Mobile Experience Division, Choi Won-Joon, expressed that the collaboration enables the tech corporation to employ its high-security tech in virtual currencies. 

The Vice President of the Bank of Korea also commented on the partnership, which he was looking forward to. He expressed that it is significant that the financial institution developed the first offline CBDC with Samsung Electronics.

To ensure everything runs smoothly, Samsung has acquired hardware certification. It will be helpful in the security global standard criteria assessment assurance level six grade. There are seven categories of security functional specifications.

Samsung’s Experience With Cryptocurrencies and AI

Samsung introduced a cryptocurrency wallet feature in its flagship smartphones, starting with the Galaxy S10, launched in early 2019. The Samsung Blockchain Wallet allows users to securely store and manage various cryptocurrencies, including Bitcoin and Ethereum.

The tech giant has recently banned using generative artificial intelligence (AI) tools, like ChatGPT, on all devices and internal networks owned by the company, despite its involvement with CBDCs. The policy was introduced in response to an incident where a staff member uploaded a “sensitive code” to the platform.
In addition the company’s interest in the crypto space, it deals with Metaverse. It made an investment in metaverse initiatives last year. Hence, Samsung is a very active company in the virtual world, and its last move on CBDCs shows the reality.