Central Bank of Italy and South Korea Collaborate on CBDC Development
The Central Bank of Italy and South Korea have formed a partnership to work together on the development of Central Bank Digital Currencies (CBDCs), focusing on key areas such as payment systems and IT. This collaboration aims to strengthen the IT and payment systems of both countries’ digital currencies, with a Memorandum of Understanding (MoU) outlining the terms of cooperation.
“The Bank of Italy and the Bank of Korea have signed a Memorandum of Understanding aimed at strengthening collaboration on IT and payment systems.”
The MoU emphasizes the sharing of knowledge obtained from extensive research conducted by both institutions. Additionally, topics related to Information Communication Technology, real-time payment, and settlement integrations will be exchanged between Italy and South Korea.
CBDC Cross-Border Payment Initiatives
A significant focus for governments in launching CBDCs is facilitating cross-border payments, enabling seamless transactions across continents and regions to compete with private cryptocurrencies. Central banks are also researching the privacy implications of CBDCs, aiming to strike a balance between empowering private corporations and safeguarding user data.
The Bank for International Settlements (BIS) recently published a report called Project Tourbillon, which explores technological integrations to ensure CBDC transactions adhere to the highest privacy standards.
Italy and Korea Advance Digital Currency Efforts
Italy is actively researching solutions for settling distributed ledger technology (DLT) transactions and plans to introduce legislations aligned with the European Union’s objectives. The Bank of Korea has announced its pilot project for a CBDC, targeting 100,000 citizens who can make purchases and deposits using digital currency. The pilot is scheduled for September to October 2024.
Hot Take: Central Bank Partnership Accelerates CBDC Development
The collaboration between the Central Bank of Italy and South Korea marks an important milestone in the advancement of CBDCs. By joining forces, these central banks can leverage their expertise in payment systems and IT to develop robust digital currencies. The partnership not only emphasizes knowledge sharing but also highlights the significance of cross-border payments and user privacy in CBDC initiatives. As more countries explore the potential of CBDCs, collaborations like this will accelerate the development and adoption of digital currencies on a global scale.
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