Samsung to Aid Bank of Korea in Central Bank Digital Currency Pilot Program – Bitcoin News

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Samsung, the Korean giant, has decided to participate in a central bank digital currency (CBDC) program run by the Bank of Korea. The company will test the feasibility of using these new instruments in its line of Galaxy phones, specifically evaluating the possibility of making offline payments between peers.

Samsung Participates Korean Pilot on Digital Currency

Samsung, the Korean technology monster, has agreed to help the Bank of Korea run a test pilot for a central bank’s digital currency that will assess the feasibility of using these instruments in the payments sector. The pilot began in July, jointly managed by the Bank of Korea and Ground X, a blockchain subsidiary of Cocoa, the messaging platform.

The news was announced by a Samsung executive, who stated:

Samsung Electronics recently decided to participate in the CBDC-led pilot project CBDC, in which stakeholders will explore CBDC practices in a test environment.

While Bank of Korea Governor Lee Ju-yeol had a negative view of cryptocurrencies due to the volatile nature of their prices, the bank nevertheless decided to launch this pilot project to examine the value of digital assets to modernize banking structures.

Offline Payments

Samsung’s involvement in the pilot will involve the use of its flagship Galaxy phone to make shipments and offline payments and monitor the conduct of these transactions. Samsung officer told The Korea Times:

Whether it will be possible to pay with mobile phones in digital currency without internet availability, or send CBDC remittances to other mobile phones or to other connected bank accounts, are the two key points that Samsung is looking at.

Several central banks around the world are now experimenting with central bank digital currencies as private alternatives like stablecoins and fintech begin to take root in more and more payment market. The People’s Bank of China already has a highly advanced digital currency project that is circulating and being used in some regions of the country.

Other countries have gone the other way, adopting existing cryptocurrencies as a legal tender. This is the case of El Salvador, which has published a law that makes bitcoin a legal tender, hoping to fill its economy with more dynamic movements and avoid problems with inflation.

What do you think of Samsung’s participation in this digital currency program? Tell us in the comments section below.

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