Sumsung (KRX:005930), one of the biggest companies in the world, is considering launching a digital currency that will work with its galaxy devices. The central bank digital currency (CBDC) will be launched in collaboration with Bank of Korea, South Korea’s central bank.
In a statement, Samsung said that the new digital currency will be able to work offline. Holders of the currency will be able to send the currency using a chip installed in the devices. Payments will also be made using the near field technology that is built in the ecosystem. The statement added that:
“Through the establishment of this MOU, we hope that the Republic of Korea will continue to lead the way in the field of offline CBDC technology, a sector that is being actively explored by global central banks.”
Central banks are working to use the blockchain technology to launch their digital currencies. In China, the Peoples Bank of China (PBoC) has already launched a digitaal version of the yuan. In April, the central bank said that it will expand the use case of the currency to countries involved in the Belt and Road Initiative (BRI).
Other central banks are working to digitize their currency. In the United States, Joe Biden signed an executive order on researching the use of digital currencies in the country. He argued that the study will give the United States an edge in the development of these currencies. The statement added:
“The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system.”
Still, not everyone is enthusiastic about CBDCs. In Florida, the governor has signed an executive order banning CBDCs in the state, citing privacy challenges. With these currencies, there are worries that governments could track purchasers of various things like guns and drugs.
The other concern of CBDCs is their practicability since most people already use digital cash options like PayPal and CashApp.
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