Shinhan Card Obtains Patent for Offline Remittance and Payment of Digital Currency

Strengthening Digital Currency R&D
Acquisition of Patents for Offline Remittance and Payment Technologies Including CBDC

[Asia Economy Reporter Ki Ha-young] Shinhan Card is strengthening research and development of digital currency, a core future payment infrastructure.

On the 30th, Shinhan Card announced that it has obtained a domestic patent for technology that enables safe remittance and payment even in situations where the network is disconnected due to natural disasters, by utilizing blockchain and digital currency.

This technology was jointly developed with the blockchain-based fintech startup 'FunnyPig.' It proposes a method of remittance and payment from one application (app) to another app equipped with digital currency, even in situations where the network is not supported, by using encryption technology and NFC communication.

First, when Shinhan Card receives a request from an individual customer to generate digital currency, it creates digital currency according to the requested amount unit through two rounds of encryption and stores it in a separate wallet and app on the blockchain. When the generated digital currency is to be traded, payment is made through remittance methods using P2P transmission technologies such as QR code, NFC, and ultrasonic waves, allowing payment through the digital currency held by the customer even when the network is disconnected. If change occurs, entering the password provided at the time of digital currency generation allows the change amount to be retransmitted.

This patent includes encrypted transaction verification to process the above transaction method more securely, and also covers the storage of encryption used for remittance and payment as well as transaction verification.

In particular, this patent contains essential core technology that can solve the requirement that digital currencies such as Central Bank Digital Currency (CBDC), which are being promoted for issuance by central banks including the Bank of Korea, must be able to make payments or remittances in disaster and emergency situations in order to properly fulfill the functions of existing currency. Currently, the Bank of Korea is conducting simulation experiments to determine whether to introduce digital currency domestically.

Yoo Tae-hyun, Head of Shinhan Card's Digital First Division, said, "We are not only obtaining domestic patents but also filing overseas patents," adding, "Once digital payment environments such as CBDC are established, we expect to lead the future payment market based on our outstanding competitiveness."

This content was produced with the assistance of AI translation services.