Italy and South Korea central banks agree on CBDC cooperation

The Financial institution of Italy announced on Dec. 5 by its official channels that it has entered right into a memorandum of understanding with the Financial institution of Korea – South Korea’s central bank- concerning IT and cost programs. 

In keeping with the Italian central financial institution, this memorandum of understanding will entail the “mutual sharing of data and data” in relation to data and communication expertise (ICT) points.

Notably, it talked about ICT points associated to real-time settlement programs and central bank digital currencies (CBDCs).

The announcement mentioned the assembly was attended by the overall supervisor of the Financial institution of Italy, Luigi Federico Signorini, who signed off on the settlement.

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All through the final yr each international locations have been exploring CBDCs, although with totally different approaches. 

In Italy, the central financial institution has primarily been specializing in interoperability in its options for settling distributed ledger technology (DLT)-based transactions by way of hash linked contracts, moderately than a wholesale CBDC strategy as is the case with different European international locations.

In the meantime South Korea has already begun to pilot its CBDC infrastructure expertise as of October of this yr. Its pilot contains each personal banks and public establishments with the technical assist being offered by Financial institution for Worldwide Settlements (BIS).

In November, South Korea introduced that it’s going to invite 100,000 citizens to test its CBDC starting in 2024.

Though many governments are transferring ahead with plans to introduce CBDCs, there stays staunch opposition to the digital currencies. One German politician lately instructed Cointelegraph that she is a “staunch opponent” of the European Union’s digital euro and believes that CBDCs are an invasion of privateness.

In america, many public figures have come out against the U.S.’s personal CBDC. The podcast host even went as far as to say that CBDCs will imply “checkmate” and “recreation over.”

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