In a significant move to promote the development of Central Bank Digital Currency (CBDC), Samsung Electronics and the Bank of Korea have signed a Memorandum of Understanding (MOU) to advance research on offline CBDC technology.
The partnership aims to explore the potential of CBDCs issued by the Bank of Korea, with a particular focus on improving the offline payment sector.
Samsung Electronics previously participated in the second phase of the Bank of Korea's CBDC simulation study.
It successfully developed offline CBDC technology that enables device-to-device transfers and payments using Near Field Communication (NFC), even without Internet connectivity for the sender's and receiver's transaction devices.
These transactions are secured within an Embedded Secure Element (eSE) chipset found in Samsung mobile devices.
With an Evaluation Assurance Level (EAL) of 6+ under the Common Criteria (CC) for security, this chipset provides the highest level of security in the world.
The primary focus of the partnership between Samsung and the Bank of Korea will be to intensify research to minimize security threats associated with offline payments using Samsung Galaxy smartphones and watches.
The goal is also to ensure stable payments in disaster situations when network connectivity is compromised.
As the world's central banks show increasing interest in CBDCs, the research results of this collaboration will guide further exploration of potential avenues of cooperation to develop the CBDC ecosystem globally.