Mobile payments by MNBC
According to a Korean Times article, the Bank of Korea (BOK) is currently working on a central bank digital currency (MNBC) project. The program began on July 28 and will be piloted by Ground X, a Korean subsidiary of instant messaging giant Kakao. The MNBC should be implemented on its Klaytn (KLAY) blockchain.
The giant Samsung Electronics will also be there. The group has been selected to host mobile payment experiments directly on its latest smartphones, the Galaxy S20.
BOK and Samsung officials said the goal is to build more efficient and advanced payment systems, with research focusing on the benefits of an MNBC.
“More specifically, the Kakao consortium and the two technology subsidiaries of the Samsung group will launch a pilot program aimed at: monitoring money transfers and remittances between countries, issuing and distributing the MNBC, and monitoring its possible operation in virtual environments, ”said the leader.
The first phase of the pilot project will run until December and will assess the relevance of blockchain technology. The second phase, which should take place from January to June, will assess the feasibility of modifying the banking practices of the BOK to include an MNBC.
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Samsung is considering offline payments
Through this project, the BOK particularly plans to study an MNBC payment system via smartphones. Samsung would like to take the opportunity to test the integration of this feature on its latest Galaxy S20s.
One of the aspects that will be studied during this BOK campaign is offline payment, that is to say without being directly connected to the Internet.
The Samsung researchers will aim in particular to determine whether it is “possible to make payments via mobile phones, or to transfer funds, using digital currency without access to the Internet”.
If the pilot is successful, South Korea will be one of the first countries to offer an MNBC-based alternative to services like Apple Pay and Google Pay. Today, they are the only tools that allow payments to be made by smartphone without contact and without an Internet connection.
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About the Author: Lilian Aliaga
Freelance writer located between Paris and Toulouse. I want to share my passion for the world of cryptocurrencies with as many people as possible. I am also interested in technical analysis and trading.
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