Samsung Electronics will participate in the Bank of Korea (BoK) project to create a pilot platform for the national digital currency (CBDC), The Korea Times reports.
BoK began testing the CBDC on July 28, 2021, in partnership with Ground X, Kakao’s blockchain subsidiary.
“Samsung Electronics decided to participate in the CBDC pilot project led by BoK, in which interested parties will explore practical aspects of digital currency in a test environment”, — said a company spokesperson.
According to him, the Kakao consortium and two Samsung technology arms will launch a pilot program aimed at “testing cross-border transfers and payments, issuing and distributing CBDC, and monitoring how this ultimately works in virtual environments.”
Samsung also plans to study the functionality of the digital won on its Galaxy smartphone lineup.
“Whether it is possible to make payments via mobile phones using digital currency without internet access or send CBDC transfers to other mobile phones and linked bank accounts — these are the two main issues Samsung is focusing on,” — explained a company representative.
Samsung SDS’s IT division will also participate in the program. Its Escor subsidiary will oversee procedures for CBDC experiments.
In October 2020, Samsung SDS, as part of the consortium submitted an application to the central bank to test the digital won.
The process of selecting a technology partner to launch the BoK’s CBDC began in May. From three applications received, the regulator chose Ground X, whose blockchain platform Klaytn will form the basis for the CBDC structure.