Tech giant Samsung is looking into launching a central bank digital currency in collaboration with the Bank of Korea.
The South Korean company said Monday, May 15, that it has signed a memorandum of understanding with the country's central bank to conduct technical research on cryptocurrency.
She explained that such a digital currency issued by a central bank will work without an internet connection, and can be sent between owners of her Galaxy smartphones and smart watches thanks to a secure chip in the devices.
Samsung indicated that payments can be made between devices through the use of near field communication technology, which is built into smartphones to enable contactless payments.
And she confirmed that, in cooperation with the Bank of Korea, they look forward to continuing research on how to reduce security risks associated with offline payments, to support reliable transactions in emergency situations even without network connections.
further attempts
Countries from China to the United States are advancing their research and experiments in so-called central bank digital currencies in hopes that it will become easier for consumers to send money instantly.
China has already created a digital version of the Chinese Yuan and is piloting its own central bank digital currency in several cities, while America is also closely examining whether and how to introduce a digital version of the dollar.
Some commentators have raised questions about the practicalities of issuing CBDCs, given the ease of making transfers with currently available methods such as online banking, money transfer apps, and cryptocurrencies.
Many privately developed cryptocurrencies now allow people to make near-instant payments as well, but the vast majority of prominent cryptocurrencies like Bitcoin are highly volatile.
