Samsung Electronics admits its participation in the Bank of Korea’s CBDC pilot project

Samsung Electronics admits its participation in the Bank of Korea’s CBDC pilot project

BUSINESS | Aug 13, 2021 | WOZINGA NEWS

Samsung Electronics admits its participation in the Bank of Korea’s CBDC pilot project

  • Samsung Electronics expressed to test the potential usability of the blockchain-based systems on its Galaxy smartphone.
  • Bank of Korea also wants to utilize Klaytn as the platform for the CBDC structure.

By Marielle Petere Wozinga Journalist

Samsung: Leveraging 2022’s smart TVs with NFT management features

Samsung Electronics has agreed to participate in the digital currency pilot project by the Bank of Korea, Korea Times reported Friday. 

In addition, the electronic firm expressed to test the potential functionality of the blockchain-based systems on its Galaxy smartphone. The plan also aims to upgrade the system even if without an internet connection, offline transactions.  

The report mentioned the views of the officials, both in Samsung and Bank of Korea (BOK). It stated that the program is per the advantages of central bank digital currency. 

Samsung Electronics ventures blockchain

As for the procedures of the pilot program, Escor will handle it. Besides, Escor is the affiliate of the company. 

It revealed the contribution of the company’s group IT unit, Samsung SDS. This unit will work in some roles in the CBDC projector in South Korea. 

One of the firm’s executives, who knows the program, revealed on Wednesday. The report quoted, “Samsung Electronics has recently decided to participate in the BOK-led pilot project.”  

In this case, it pointed out that all involved institutions and firms have to research. It continued that it is for the usefulness of CBDC in test conditions. 

The unverified executive added, “the Kakao consortium and Samsung Group’s two tech affiliates will launch a pilot program…” Yet, it emphasized the goal aligned at checking on cash transfers and remittances between countries. 

Moreover, the executive mentioned the issuance and distribution of the CBDC. It noted that monitoring shows how it functions in the virtual realm.

Bank of Korea expands the CBDC project

On July 29, the first phase of South Korea’s CBDC has started. It rolls out until 2023. Meanwhile, the second and final phases run from January to June.

Lee Ju-yeol is the official of BOK. He mentioned that all cryptocurrencies are not valued property. The reason is the high volatility. 

However, Lee accepted the potential of studying and contemplating the CBDC. The report noted that the BOK’s ambition is to modernize the financial system

So the action of BOK is to utilize Klaytn as the platform for the CBDC structure. What is It is Klaytn? It is a blockchain platform of Ground X. 

What is Ground X? According to its site, Ground X is the blockchain subsidiary of Korea’s largest mobile platform, Kakao firm. 

Do you agree with the idea that CBDC has enormous potential in modernizing the financial system?

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