South Korea’s central bank, the Bank of Korea (BOK), has signed a memorandum of understanding (MoU) with Samsung Electronics to research the use of central bank digital currency (CBDC) for offline payments.
The MoU, which was signed on May 15, 2023, will see the two organizations work together to develop a prototype CBDC system that can be used for offline payments. The system will be based on the BOK’s existing CBDC research platform, and it will be tested in a real-world environment.
The goal of the project is to develop a CBDC system that is secure, efficient, and user-friendly. The system will also need to be able to work offline, as there are still many parts of South Korea that do not have reliable internet access.
If successful, the project could pave the way for the introduction of a CBDC in South Korea. CBDCs are digital versions of fiat currencies, and they have the potential to revolutionize the way we pay for goods and services.
CBDCs could offer a number of advantages over traditional payment methods, such as faster transactions, lower costs, and increased security. They could also make it easier for people to access financial services, such as banking and investment.
The BOK is one of a number of central banks around the world that is exploring the possibility of issuing a CBDC. Other countries that are considering CBDCs include China, the United States, and the European Union.
The development of CBDCs is still in its early stages, but it is an area that is attracting a lot of interest from governments, businesses, and consumers. If successful, CBDCs could have a major impact on the way we pay for things in the future.
