After collaborating in 2022, Samsung and the Bank of Korea are renewing their cooperation to develop a central bank digital currency (MNBC). Thus, one of their main objectives is to make possible monetary transactions on Samsung products without using the Internet network.
The development of an MNBC continues in South Korea
Today, the central bank of South Korea and the multinational Samsung signed a memorandum to develop a central bank digital currency (MNBC) allowing transactions to be carried out without going through the Internet.
As a reminder, a central bank digital currency is a form of currency whose exchange is completely digital through devices such as smartphones and computer servers. Unlike digital assets such as cryptocurrencies, MNBCs are deployed by central banks which control their monetary issuance.
Lee Seung-heon, deputy governor of the Bank of Korea, came to the company’s headquarters for the occasion. He was received by Choi Won-joon, director of the R&D department of Samsung Mobile. The latter claimed that this future digital currency could be used internationally :
“We were able to apply Samsung Electronics’ advanced security technology to digital currency through collaboration with the Bank of Korea. […] With the cooperation of both parties, we can focus on growing MNBC technology for global offline payments. »
For his part, Lee Seung-heon stresses the importance of this collaboration for South Korea: with this agreement, the Far Eastern country aims world leader in MNBC technology. However, China remains the most advanced country to date, with its digital yuan circulating for more than two years.
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Samsung at the heart of the monetary project
Previously, Samsung had already collaborated with the Korean financial institution on the issue of MNBCs. Last year, the firm worked on a digital currency project allowing transactions between different devices without the Internet. The operation was a success thanks to a computer chip created by the multinational specializing in electronic products.
If the Bank of Korea is committed to creating a network-free system, it is to anticipate natural disasters that may impact the Internet network on its territory. Therefore, a technology allowing offline transactions is necessary to anticipate particularly powerful climatic phenomena.
One of the first objectives of the Korean institution is to make digital currency transactions accessible through Samsung Galaxy smartphones as well as Samsung Watch connected watches.
Samsung has been interested in technologies around digital assets for several years now. From 2019, the firm gave access to decentralized applications via its smartphones at a time when the decentralized finance (DeFi) industry was almost non-existent.
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Source: The Korea Herald
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