Collaborative Agreement on CBDC Collaboration Established between Central Banks of Italy and South Korea

Italy and South Korea Collaborate on CBDC Development

Italy’s Banca d’Italia and South Korea’s Bank of Korea have signed a memorandum of understanding to share knowledge and collaborate on the development of central bank digital currencies (CBDCs) and other financial technologies. The agreement focuses on information and communication technology issues related to real-time settlement systems and CBDCs.

Divergent Approaches to CBDCs

The agreement highlights the contrasting approaches of Italy and South Korea when it comes to CBDCs. Italy has been using distributed ledger technology for settling transactions through hash-linked contracts, prioritizing interoperability. In contrast, South Korea has launched a pilot of its CBDC infrastructure and plans to involve 100,000 citizens in testing the digital currency by 2024.

Controversies Surrounding CBDCs

While Italy and South Korea collaborate on CBDC development, it’s important to note that the global landscape of CBDCs is contentious. In Europe, some politicians raise concerns about privacy, leading to opposition to the concept. Similarly, figures like Joe Rogan in the United States view CBDCs as a potential threat to personal freedom.

Hot Take: The Future of CBDCs

The collaboration between Italy and South Korea marks an important step in the development of CBDCs. As countries explore different approaches and navigate controversies surrounding privacy and personal freedom, it remains to be seen how CBDCs will shape the future of finance.