- Samsung is discussing the launch of a Bank of Korea-backed offline digital currency for Galaxy phones.
- NFC technology has the potential to revolutionize the offline exchange of digital currencies.
- Countries like China and Sweden are also exploring the use of NFC in their central bank-issued digital currencies.
Korean tech giant Samsung is looking at launching a digital currency to transfer money between Galaxy phones.
The currency would be “offline”, so it would not be linked to the internet and would already have the endorsement of the central bank, Bank of Korea.
Samsung said it has already signed a memorandum of understanding with the South Korean monetary authority to move forward with a technical investigation and potential implementation.
Samsung said that CBDC, as central bank-issued digital currencies are called, would work “offline” and could be sent to users of Galaxy smartphones and the brand’s smartwatches.
Payments between Samsung owners could materialize between devices from the use of near field communication technology (NFC), which is now integrated into phones to enable contactless payments.
NFC technology allows data transfers between phone users even when they do not have an Internet connection.
In the statement, Samsung says that together with the Bank of Korea, they are looking for a way to “minimize the security risk associated with offline payments”, with the idea of “supporting reliable transactions in emergency situations, even without network connections”.
The Bank of Korea, for its part, said in a separate statement that they would be the first central bank to develop CBDC technology offline.”
China has already created a digital version of the Chinese yuan and is testing CBDC technology in some cities.
The United States, meanwhile, is also analyzing the implementation of a digital version of the dollar.
Samsung, NFC and digital currency
NFC (Near Field Communication) technology is beginning to gain space in the world of digital payments and now, according to its proponents, it has the potential to revolutionize the offline exchange of central bank digital currencies (CBDCs).
As countries explore the possibilities of CBDC implementation, NFC technology presents a perfect avenue to enable secure and convenient transactions.
NFC technology allows two devices to establish a wireless connection when they are very close, usually within a few centimeters.
By leveraging NFC, offline CBDC transactions become feasible, even in areas with limited network coverage.
Another example in this matter comes from Sweden, where the Riksbankthe central bank, has been actively exploring the implementation of an e-krona (the digital crown), and NFC technology could facilitate its use offline, ensuring accessibility in remote areas and during emergencies.
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