Italy’s central bank signs agreement with South Korea’s central bank
Italy’s central bank, Banca d’Italia, has announced that it has entered into a memorandum of understanding with South Korea’s central bank, the Bank of Korea. The agreement focuses on information and communication technology (ICT) issues, specifically real-time settlement systems and central bank digital currencies (CBDCs). The general manager of Banca d’Italia, Luigi Federico Signorini, signed off on the agreement. Both Italy and South Korea have been exploring CBDCs, although their approaches differ. Italy has been focusing on interoperability in settling distributed ledger technology (DLT)-based transactions, while South Korea started piloting its CBDC infrastructure technology in October.
South Korea plans to test CBDC with citizens
In November, South Korea announced its plan to invite 100,000 citizens to test its CBDC beginning in 2024. The pilot program will include both private banks and public institutions, with technical support provided through the Bank for International Settlements. This move indicates South Korea’s progress in the development of its CBDC infrastructure. Meanwhile, in the United States, there is opposition to the idea of a CBDC. Public figures like podcast host Joe Rogan have expressed concerns about the implications of a CBDC, suggesting that it could have negative consequences.
Hot Take: Central banks continue to explore CBDCs
The collaboration between Italy’s central bank and South Korea’s central bank highlights the ongoing interest and exploration of central bank digital currencies (CBDCs) worldwide. While countries like Italy focus on interoperability and settlement systems based on distributed ledger technology (DLT), others like South Korea are already piloting their CBDC infrastructure. As different nations experiment with various approaches to CBDCs, it becomes clear that this technology is a topic of great significance and potential impact. However, concerns and opposition to CBDCs also exist, emphasizing the need for careful consideration and evaluation before implementing such systems.
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