Samsung explores the launch of digital currency working with Galaxy devices

Samsung revealed on Monday that it is looking with the Bank of South Korea to launch an "offline" digital currency that works with Galaxy devices. 

The South Korean consumer electronics giant said it had signed a memorandum of understanding with the country's central bank to conduct technical research on the digital currency.

Samsung added that the central bank's digital currency, which it plans to launch, has the advantage that it supports working "offline" and can be sent between owners of Galaxy smartphones and smart watches thanks to a secure chip that integrates into the devices. 

The company explained that payments between devices can be made through the use of NFC technology built into smartphones, to enable contactless payments.

 Samsung said it developed a solution that applies Near Field Communication technology to central bank cryptocurrencies last year. The company added that this allowed users to make payments even when they did not have an internet connection.

In a press release published on Monday, Samsung said it looks forward with the Bank of Korea to "continue researching how to reduce the security risks associated with offline payments, to support trusted transactions in emergencies even without network connections.

" Sigma – Mobile T2-M-II Msgat – Mobile T2-M-IIII M-MT-4

Songhoon Lee, First Vice Governor of the Bank of Korea, said in a press release: "We are very pleased to be the first central bank to develop the CBDC offline digital currency technology in partnership with Samsung Electronics.

 "By establishing this MoU, we hope that the Republic of Korea will continue to lead the way in the field of Central Bank digital currency offline technology, a sector that global central banks are actively exploring," he added. Won Joon Choi, executive vice president of mobile experience at Samsung, said: "This collaboration with the Bank of Korea has allowed us to apply Samsung's advanced security innovations in cryptocurrency"We expect our collaboration to make a valuable contribution to the advancement of the central bank's global offline digital currency technology."A number of countries, from China to the United States, are developing their research and experimentation into so-called central bank digital currencies for central banks in the hope that it will become easier for consumers to send money immediately. China has already created a digital version of the Chinese yuan and is experimenting with its central bank digital currency in several cities, while the United States is also closely studying the possibility of introducing a digital version of the dollar, and how that would work. 

Some commentators have raised questions about the practicalities of issuing CBDCs, given how easy it is to make transfers through currently available methods, such as online banking, money transfer apps, and cryptocurrencies.Many cryptocurrencies developed by private companies now allow people to make near-instant payments as well. But the vast majority of cryptocurrencies, such as Bitcoin, are highly volatile. Stablecoins have been promoted as a possible solution to this, yet governments are wary of cryptocurrencies issued by private companies. However, there are still obvious issues for businesses when it comes to instant settlement of transactions. The way the banking system promises means that it can often take days to settle payments from merchant customers. 

This point is a nuisance that private companies and governments hope to address through new technologies, including blockchain and cryptocurrencies.