The Bank of Korea has launched a trial program to launch its CBDC (Central Bank Digital Currency) via Samsung Electronics’ Galaxy smartphones, a South Korean multinational electronics business.
The South Korean Central Bank is considering using CBDC as a physical money substitute. Furthermore, on June 28, 2021, the Central Bank launched a pilot initiative to evaluate the feasibility of digital payments utilizing Galaxy devices.
The pilot program, according to an unnamed bank executive at Korea’s Central Bank, aims to see if it is possible to transfer funds (payment remittances) through mobile smartphones using the CBDC without access to the internet or to send digital currency payments to other mobile smartphones or connected bank accounts.
There will be two parts to the pilot program. The first phase will go through December of this year to determine if the technology is suitable. The second phase, which is anticipated to run from January to June next year, will look into the practicality of CBDC transactions and settlements in real-life situations.
Let’s assume the Bank of Korea’s trial program is successful. In that case, South Korea will be one of the first countries to provide a CBDC alternative to systems like Google Pay and Apple Pay, which allow contactless phone purchases without using a computer.
Making it Easier to Trade Cryptocurrencies
Blockchain has significantly impacted the business world, with nearly every business and sector specialty demonstrating the technology’s significance.
As a result, several startups and well-known companies have joined the blockchain space, with Samsung, located in South Korea, leading the way. The electronics behemoth has made several efforts to strengthen its position in the blockchain sector.
Samsung has been incorporating crypto assets into its smartphone hardware since 2019. The S10 model, which came with a built-in bitcoin wallet, was the company’s first product. In 2020, Samsung released the S20 model, which included more storage for private bitcoin keys in Galaxy models. In addition, Samsung has unveiled a wallet that allows users to store cryptocurrencies like Bitcoin and others on their devices and make contactless payments with them.