Italy’s Banca d’Italia has taken a strategic stance, emphasizing interoperability over wholesale Central Bank Digital Currency (CBDC) adoption for settling distributed ledger transactions.
The central bank of Italy has joined forces with South Korea’s Bank of Korea, forging a memorandum of understanding focused on advancing information technology (IT) and payment systems.
Italy-South Korea Collaboration on ICT and CBDCs
Under the memorandum, both central banks pledge to engage in a robust collaboration centered on sharing expertise in information and communication technology (ICT) matters. The agreement specifically zeroes in on real-time settlement systems and the evolving landscape of central bank digital currencies (CBDCs).
Notably, Italy’s focus on prioritizing interoperability for distributed ledger transaction settlements distinguishes its approach from wholesale CBDC adoption.
South Korea’s CBDC Technology Pilots
Concurrently, South Korea has embarked on CBDC technology pilots that involve comprehensive participation from both the private and public sectors. Furthermore, this initiative outlines plans to invite 100,000 citizens for testing CBDC technology in 2024, reflecting the country’s proactive stance in exploring the realm of digital currencies.
Global Perspectives and Opposition towards CBDCs
Despite the growing global interest in CBDCs, opposition and skepticism persist. A German politician has voiced concerns regarding the European Union’s digital euro, citing apprehensions about privacy.
Similarly, in the United States, notable figures like Joe Rogan have expressed skepticism, labeling CBDCs as a potential “checkmate” or even “game over.”
The collaboration between Italy and South Korea signifies a joint effort aimed at effectively navigating the ever-evolving terrain of digital currencies and settlement systems. Lastly, by prioritizing interoperability and knowledge-sharing on ICT issues and CBDCs, both countries strive to foster advancements in the realm of financial technology.
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