Samsung to Pilot Digital Won in Offline Payments

The Bank of Korea (BoK) and Samsung Electronics have agreed to continue researching CBDC technology in the offline-payments sector, according to SamNews 24.

By signing the memorandum of understanding, the parties noted the global shift of major governments toward the concept of a national digital currency.

The corporation participated in the previous stage of CBDC testing by the central bank. The aim of the experiments was to test the ability to issue, distribute and redeem the digital won. Samsung also tested the functionality of payments using NFC via its smartphones with built-in Secure Element hardware.

Building on this technology, the partners will work to minimise security threats when conducting offline transactions through mobile devices. The BoK and Samsung will also test the possibility of making payments in emergencies and in the absence of internet connectivity.

“In collaboration with the Bank of Korea, we were able to deploy Samsung’s advanced security technology in the realm of digital currencies. Building on the partnership, we expect to make a meaningful contribution to the global development of offline CBDC functionality,” said a representative of the tech giant.

Earlier, the central bank completed the first phase of CBDC testing in January 2022.