The project led by the Bank of Korea (BOK) will enable them to build a pilot platform for a central bank digital currency (CBDC). Samsung is testing out the viability of the CBDC on its Galaxy phones.
BOK On Board With CBDC
By using Klaytn, Ground X’s blockchain platform, as the primary platform for its CBDC structure, BOK initiated the CBDC project on July 28. With central banks across the globe opening up to the possibility of CBDCs, BOK Governor Lee Ju-Yeol seems to have gotten over his misgivings towards digital currencies and embraced the upcoming BOK CBDC. Plus, the popularity of stablecoins has also given rise to the demand for central banks to launch their own versions of digital currencies. The Governor is curious to study the role of CBDCs in the modernization of financial systems, while BOK is planning to operate its simulation programs regarding the efficacy of the CBDC in two stages.
Samsung Joins The Team
Recently, Samsung Electronics has decided to join the project, where reportedly all involved parties will research the practicalities of the CBDC in a test environment. Furthermore, since Samsung is interested in testing the possible usability of blockchain-based systems on its Galaxy mobile lineup, the company would be able to achieve that through the CBDC project.
Both BOK and Samsung officials are exploring the benefits of a CBDC, especially when making payment systems more efficient and inclusive. According to an anonymous source who is in the know,
“The Kakao consortium and Samsung Group’s two tech affiliates will launch a pilot program aimed at checking on money transfers and remittances between countries, issuing and distributing the CBDC, and monitoring how that eventually works in virtual environments.”
Samsung Testing CBDC Functionality On Galaxy
While the BOK is focused on finetuning the payment settlement processes, Samsung is looking to test the functionality of the CBDC through the Galaxy smartphone. They want to determine whether it will be possible to conduct payments using CBDC via their smartphones but without the internet. They will also test if CBDC remittances can be sent to other mobile phones or other connected bank accounts.
Samsung will be conducting the actual experimental procedures through its affiliate Escor, with the help of its IT unit, Samsung SDS.
Samsung Galaxy’s Tryst With Blockchain Continues
This is not the first time that Samsung Electronics has tried to adopt blockchain functionality. Earlier in May, the company announced that it had expanded support for blockchain users trading virtual assets on its Galaxy smartphones amid rising interest in cryptocurrencies. The update allowed users to manage transactions by importing crypto assets stored on select cold hardware wallets to the Samsung Blockchain Wallet available on most Galaxy smartphones.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
