Samsung Electronics has reportedly joined forces with the Bank of Korea (BOK) to participate in a central bank digital currency (CBDC) pilot program kickstarted by BOK late last month. Samsung and other interested parties “will research the practicalities of the CBDC in a test environment,” according to an executive statement cited by The Korea Times.
In essence, Samsung Electronics wants to test the central bank digital currency (CBDC) and usability of blockchain-based systems on its Galaxy smartphones. Through its pilot tests, the company aims to determine if it will be possible for mobile payments to be completed using the digital currency when there's no internet available.
Furthermore, Samsung Electronics is trying to determine whether or not it will be possible to “send CBDC remittances to other mobile phones or to other connected bank accounts.” According to an unnamed Samsung official, these are “the core points” the company's exploring through this partnership with the Bank of Korea.
The pilot program will be backed by Samsung SDS and the Kakao consortium
The SDS branch of Samsung will be involved with the pilot program for the central bank digital currency, but it won't work alone. It will be backed by affiliate Escor, and it will be joined by the Kakao consortium to get the project rolling.
Both Samsung and the Kakao consortium will work on launching the pilot program designed to test CBDC transfers and remittances between different countries.
