Korea Times reported that Samsung will participate in the Bank of Korea (BOK) central bank digital currency (CBDC) simulations. Two weeks ago, the BOK awarded the project to Ground X, a blockchain subsidiary of Kakao, Korea’s largest social network.
During the simulations, Samsung will be represented by Samsung Electronics and Samsung SDS and will research cross-border payments to other mobile phones or connected bank accounts. Samsung affiliate S-core will also participate.
“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,” a Samsung executive told Korea Times.
A robust and reliable payment system is at the core of Korea’s digital won efforts. Samsung is hoping to use its Galaxy smartphone to test the ability to conduct offline payments.
Samsung joins KakaoBank Corp, U.S-based blockchain firm ConsenSys which is advising Ground X and Korean blockchain startup Onther on the BOK project, which is set to run for a period of up to two years and began on July 28.
Last month, Ground X was selected by the Bank of Korea to lead its CBDC simulation initiative with a budget of up to $4.4 million, beating Line Plus (part-owned by Naver) and SK C&C.
Before the bidding competition, several other organizations conducted unofficial experiments in the hope of participating in the trials, including Shinhan Bank and LG CNS. Hyundai HDAC also explored custody for the potential CBDC.