Euro-Asia Fusion: Italy & South Korea Forge Alliance For CBDC Collaboration

Italy and South Korea’s central banks have revealed a memorandum of understanding regarding the advancement and implementation of Central Bank Digital Currencies (CBDC).

On Dec 5, the Bank of Italy made a formal announcement via its official communication channels, revealing its engagement in a memorandum of understanding with the Bank of Korea, the central bank of South Korea. The agreement concerns collaboration between information technology (IT) and payment systems.

As the Italian central bank outlines, this memorandum of understanding involves the reciprocal exchange of knowledge and information, specifically focusing on information and communication technology (ICT) issues.

Specifically, the memorandum highlighted information and communication technology (ICT) issues, particularly on real-time settlement systems and central bank digital currencies (CBDCs).

The announcement noted the presence of Luigi Federico Signorini, the general manager of the Bank of Italy, who officially endorsed and signed the agreement during the meeting. Over the past year, both nations have explored central bank digital currencies (CBDCs), albeit employing distinct approaches.

In Italy, the central bank has predominantly directed its attention towards achieving interoperability in its solutions for settling transactions based on distributed ledger technology (DLT). This emphasis differs from some European countries’ wholesale central bank digital currency (CBDC) approach.

Citizen Involvement: South Korea Plans 100,000-Person CBDC Testing In 2024

Meanwhile, South Korea has initiated the pilot phase of its Central Bank digital currency (CBDC) infrastructure technology since Oct. This pilot program encompasses collaboration with private banks and public institutions, facilitating technical support through the Bank for International Settlements (BIS).

In Nov, South Korea announced its intention to invite 100,000 citizens to participate in its Central Bank digital currency (CBDC) testing phase starting in 2024. Despite numerous governments progressing with implementing Central Bank Digital Currencies (CBDCs), strong opposition to these digital currencies continues.

A recent statement from a German politician to Cointelegraph revealed her staunch opposition to the European Union’s digital euro, asserting that she views CBDCs as an infringement on privacy.

Within the United States, numerous public figures have expressed their opposition to the country’s own Central Bank Digital Currency (CBDC). One podcast host stated that the advent of CBDCs would signify a “checkmate” and mark the end of the game.

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