How Samsung Will Help The Bank Of Korea With CBDC Development

Reynaldo Marquez

3 years ago

2 mins read

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Started by the end of July 2021, the Bank Of Korea central bank digital currency (CBDC) project has been gaining traction. Per a report by the Korea Times, the project will be aided by electronics company Samsung.

The company and the financial institution will build the platform that will support the CBDC. In addition to Samsung, the Bank of Korea has brought in other partners from the private sector, such as Ground X, a blockchain-based division from another company called Kakao.

The Times cited a source on an executive position to support its claims:

Samsung Electronics has recently decided to participate in the BOK-led CBDC pilot project, under which interested parties will research the practicalities of the CBDC in a test environment.

Representatives from Samsung and the Bank of Korea have spoken about the benefits of CBDCs and their potential to improve the country’s payment system. The Times claims that Samsung and the Bank of Korea will test the “usability” of blockchain systems on the Galaxy mobile.

Specifically, 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 To Test CBDC Functionality With Its Smartphones?

The sources quoted by the report said the project will have two main focuses on the Samsung side: the capacity to conduct payments to other devices and the possibility

(…) payments via mobile phones using the digital currency with no internet availability, or to send CBDC remittances to other mobile phones or to other connected bank accounts.

The objectives will be carried out by the company’s IT unit and an affiliate called Escor. These entities will handle the procedures for the experiments with the central bank digital currency (CBDC), the Times reported.

Apparently, high-ranking officials at the Central Bank of Korea have dismissed cryptocurrencies and their potential to improve the current financial systems, mainly due to the volatility of the assets. However, China’s own digital currency, the e-CNY or digital yuan, has brought concerns to its neighbors in Asia.

The development of South Korea’s CBDC will initially operate in a virtual environment during its test phase. Samsung and other partners involved will look for issues and bugs and the technical limitations of the project.

Later, in mid-2022 the project will be focused on “offline payments”, e-commerce, remittances, and other applications. The CBDC will allegedly also have advance privacy features developed in collaboration with private banks.

At the time of writing, Bitcoin trades at $49,913 with a 2% loss in the 24 hours chart.

CBDC Samsung — BTC with minor losses after rejection at the high $40,000 in the daily chart. Source: BTCUSD Tradingview

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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