Banca d'Italia, the central bank of Italy, has announced its partnership with the Bank of Korea, South Korea's central bank.
Banca d'Italia, the central bank of Italy, has announced its partnership with the Bank of Korea, South Korea's central bank, through a memorandum of understanding (MoU) aimed at cooperating on IT and payment systems. Unveiled on December 5, the MoU centers on the exchange of knowledge and information regarding information and communication technology (ICT) matters.
The MoU specifically highlights ICT issues related to real-time settlement systems and central bank digital currencies (CBDCs). Italy and South Korea have pursued divergent paths in exploring CBDCs over the past year. Italy's focus has primarily been on achieving interoperability in settling transactions based on distributed ledger technology (DLT) using hash-linked contracts, departing from the wholesale CBDC approach embraced by other European nations.
On the other hand, South Korea initiated a pilot program for its CBDC infrastructure technology in October, involving both private banks and public institutions. The Bank for International Settlements is providing technical support for this initiative. Additionally, South Korea plans to invite 100,000 citizens to participate in CBDC testing beginning in 2024.
Despite the progress made by governments worldwide in CBDC development, significant opposition to digital currencies remains. A German politician recently expressed strong opposition to the European Union's digital euro, viewing CBDCs as an encroachment on privacy. In the United States, several public figures, including podcast host Joe Rogan, have voiced skepticism and concerns about the country's own CBDC.
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