Italy and South Korea Unite to Advance CBDC and Real-Time Settlements
by Fintech News Hong Kong December 6, 2023The Bank of Italy and the Bank of Korea have signed a memorandum of understanding (MOU) to facilitate the exchange of knowledge and expertise related to central bank digital currencies (CBDCs) and real-time gross settlement (RTGS) systems.
Under the terms of the MOU, the Bank of Italy and the Bank of Korea will share information on the latest proofs of concept, technical standards, and policy considerations related to the potential launch of CBDCs.
The partnership reflects differing strategies in CBDC development. South Korea is advancing a wholesale CBDC to support tokenised bank deposits, emphasising programmable payments.
Meanwhile, Italy focuses on interoperability in distributed ledger technology (DLT) transactions within the European Central Bank’s retail CBDC trials.
South Korea’s initiatives include CBDC technology pilots with private and public sectors, aiming to involve 100,000 citizens in testing by 2024. Avoiding a wholesale CBDC approach, Italy concentrates on DLT-based transactions through hash-linked contracts.
