Central Bank of Italy and South Korea Strike CBDC Partnership on IT and Payment Systems
The Central Bank of Italy and South Korea have announced a partnership to collaborate on key areas like payment systems and IT in the development of Central Bank Digital Currencies (CBDCs).
A Dec 5 press release by La Banca d’Italia disclosed the agreement which would see both central banks follow the terms of a Memorandum of Understanding (MoU) aimed at strengthening both IT and payment systems of both countries’ digital currencies.
“The Bank of Italy and the Bank of Korea have signed a Memorandum of Understanding aimed at strengthening collaboration on IT and payment systems.”
The terms of the MoU stress on mutual sharing of knowledge gathered from the extensive research both institutions have embarked on in recent years. All topics on Information Communication Technology and real-time payment and settlement integrations will also be shared by both countries.
Per the statement, Luigi Federico Signorini the General Director of the Bank of Italy participated in the memorandum and signed the protocol.
A major key point in rolling out CBDCs by several governments has been getting cross-border payments as a way to rival private cryptocurrencies and connect different continents and regions without stress on the part of consumers.
Another technological issue being researched across many central banks is the privacy implications of a CBDC rollout with several governments backing a model that gives private corporations more powers while ensuring the safety of user data.
Recently, the Bank for International Settlements (BIS) published a report on Project Tourbillon, a research done on ensuring CBDC transactions are done with the highest privacy standards through technology integrations.
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