Samsung will collaborate with Kakao to conduct offline trials of South Korean CBDC.
South Korea has made significant progress toward developing its central bank’s digital currency [CBDC]. Indeed, two Samsung affiliates are set to join several Kakao subsidiaries in piloting the Bank of Korea’s CBDC prototype, according to local media. Samsung will reportedly conduct an offline payment test using its Galaxy smartphones.
Samsung Electronics and its subsidiary Samsung SDS were recently confirmed as members of the Kakao consortium by the country’s central bank. Samsung SDS, Samsung’s IT services and blockchain division, will join Kakao as a technology system advisor under the terms of the current agreement. Additionally, its other subsidiary S-core will collaborate on coin issuance with Kakao’s blockchain company Ground X.
“From the 28th of this month to June of next year, Samsung Electronics and Kakao’s blockchain subsidiary, Ground X, plan to begin full-scale research with the Bank of Korea. Along with issuing and distributing CBDCs, it intends to implement virtual cross-border remittance and payment functions.”
aforementioned report stated
Samsung and Kakao are teaming up to develop South Korea’s CBDC, and the mobile giant wants to test the functionality of a CBDC contained within one of its Galaxy phones. The team will investigate whether Galaxy phones can conduct transactions in an offline mode, that is, without access to the Internet. If this is possible, it will significantly aid in the development of a CBDC.
While the government is rushing to establish a CBDC, its stance on mainstream cryptos has remained largely unchanged. Recently, the ruling Democratic Party’s crypto-team met with prominent exchanges in the country to discuss plans to “institutionalize corporate transactions” on crypto-exchange platforms. This was an attempt to strengthen the country’s cryptocurrency regulations.
Exchanges, on the other hand, were dissatisfied and “vehemently criticized the government’s regulatory measures.” South Korean exchanges are already facing a registration deadline of 24 September. Interestingly, a competing bill has been introduced in parliament, requesting a six-month extension. This enables exchanges to comply with a lengthy list of regulatory requirements.
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