Samsung is investigating South Korea's CBDC for offline payments

Simar Marwaha
Simar Marwaha
Published on May 15, 2023 02:02 PM

Despite having a keen interest in CBDCs, Samsung reportedly barred employees from using generative artificial intelligence (AI) technologies like ChatGPT on any Samsung-owned devices or internal networks.

Samsung is investigating South Korea's CBDC for offline payments
Source: Forbes

According to reports, tech giant Samsung Electronics and the central bank of South Korea have teamed together to study central bank digital currency (CBDC) for use in offline transactions.

As per local media outlet KBS World, the Bank of Korea (BOK) and Samsung inked an agreement on May 15 to conduct research on offline CBDCs. Both parties will work together to investigate the offline capabilities of the central bank's CBDC.

Samsung will investigate CBDC for offline payments in South Korea

Together with the South Korean central bank, tech giant Samsung Electronics is researching the use of central bank digital currency (CBDC) for offline transactions.

The Bank of Korea (BOK) and Samsung signed a contract on May 15 to carry out research on offline CBDCs, according to the local media outlet KBS World. Together, the two will look at the CBDC of the central bank's offline capabilities.

Samsung also took part in the BOK's 10-month CBDC simulation experiment research's second phase, which focused on the retail application of CBDCs. The BOK's initial examination of CBDC examined its fundamental operations, including issuance, distribution, and redemption.

With the help of the most recent MOU, the South Korean CBDC would be able to execute payments and remittances without utilizing the internet by using near-field communication (NFC) on Samsung mobile devices. Won-Joon Choi, vice president of Samsung Electronics, disclosed that the partnership allowed the tech giant to use Samsung's advanced security technologies in the realm of digital money. Added him:

Based on the two firms' collaboration, we anticipate being able to significantly advance worldwide offline CBDC technology.We tested fundamental operations including the issue, distribution, and redemption of CBDC.

Samsung is said to have acquired hardware certification for the security international common criteria assessment assurance level six grade, which entails seven levels of security functional requirements, as part of the partnership.

Samsung reportedly forbade employees from utilizing generative artificial intelligence (AI) tools like ChatGPT on any Samsung-owned devices or internal networks, despite a strong interest in CBDCs.

As previously reported by various sources, Samsung instituted the rule as a result of an employee posting a "sensitive code" on the website. An internal communication on the subject stated:

"HQ is reviewing security measures to create a secure environment for safely using generative AI to increase employee productivity and efficiency," the statement reads.

The use of generative AI technologies has also been prohibited by major banking institutions including JPMorgan, Bank of America, Goldman Sachs, and Citigroup.

Let us see how this action affects future South Korean crypto regulation.





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