Samsung has started a partnership with South Korea for the country’s pilot project to test CBDC (central bank digital currency), which is at the stage of its development. Because of the partnership, the digital currency will shortly be launched on the smartphones of Samsung belonging to its Galaxy series.
The pilot project and Samsung
The pilot test of the Korean digital currency was initiated by the country on 28th July 2021, having Ground X as another participant. Ground X is related to Kakao (one of the prominent platforms for messaging). An official who had sufficient knowledge about the proceedings informed Times (a local Korean media outlet) that payments would be treated as the most focused point in the upcoming trial. He further mentioned that during the pilot program, money transfers among the countries, release and distribution of the CBDC, as well as its monitoring, will be the other key factors to be examined.
The CBDC’s leading platform will be Klaytn (a Ground X-based program). In general, an appreciation has been shown regarding the CBDCs by the officials. In 2019, Samsung got involved in the crypto market. In this respect, an announcement stated that its model ‘Samsung Galaxy S10’ would support different cryptocurrencies such as Bitcoin, Enjin, and Ethereum. Most recently, Samsung declared that hardware wallets would be supported by Galaxy devices, which is extremely beneficial for increasing the users’ exposure to the market of cryptocurrency.
South Korea is following China
The comprehensive wave of regulation which expanded over a recent couple of years, signals that South Korea is determined to keep monitoring the market. Its foremost desire will be to swiftly implement its digital currency because its advantages are apparent, just like Chinese pilot projects of CBDC. Following that, the country has formulated a blockchain and CBDC focused program which spans over ten years.
Although it is far behind China regarding the integration and reaches, South Korea has additionally been performing tremendous advances in its CBDC proceedings. It is re-establishing regulation for protecting the investors and to assist the latest solutions. During the current month, the country will see the furnishing of its completely regulated exchange. The country has already commenced taxing over the market of cryptocurrency, due to which some investors criticize the officials concerning the rate of tax. The majority of the residents believe in taxing the market.