On December 5, Italy’s Banca d’Italia and the Bank of South Korea joined in a pioneering agreement to share knowledge and collaborate on the development of central bank digital currencies (CBDCs) and other financial technologies.
Through a memorandum of understanding with South Korea’s central bank, the Bank of Korea, both nations agreed to share knowledge and information on information and communications technology issues related to real-time settlement systems and CBDCs. .
The agreement, signed by Luigi Federico Signorini, CEO of the Banca d’Italia, underlines the two countries’ divergent approaches towards CBDCs. Italy has been leveraging distributed ledger technology to settle transactions through hash-linked contracts, favoring interoperability over the wholesale CBDC approach in other European nations.
After embarking on a pilot of its CBDC infrastructure in October, South Korea plans to involve 100,000 citizens in testing its digital currency in 2024. This pilot covers both private banks and public institutions, and the Bank for International Settlements will provide support technical.
However, it is essential to note that the global CBDC landscape is riddled with controversies. In Europe, some politicians are vehemently opposed to the concept, citing privacy concerns. Similarly, prominent figures such as podcast host Joe Rogan have expressed strong reservations in the United States, framing CBDCs as a major threat to personal freedom.
