Italy and South Korea have recently signed a memorandum of understanding (MoU) to collaborate on the development and deployment of Central Bank Digital Currencies (CBDCs). The focus of this partnership is on sharing knowledge and information related to real-time settlement systems and CBDCs, particularly in the field of information and communication technology (ICT). Both countries have been actively exploring CBDCs over the past year, although with different approaches. Italy’s central bank has been focusing on interoperability solutions for settling transactions using distributed ledger technology (DLT) through hash-linked contracts. On the other hand, South Korea has already started piloting its CBDC infrastructure technology, involving both private banks and public institutions. The Bank for International Settlements is technically supporting this pilot, and South Korea plans to expand it by inviting 100,000 citizens to test its CBDC starting in 2024.This collaboration between Italy and South Korea highlights the growing trend of international cooperation in the field of digital currency, as countries seek to learn from each other’s experiences and expertise in this rapidly evolving area. It is worth noting that Europe has also been exploring CBDCs, with twelve countries already exploring blockchain technology. The European Central Bank (ECB) is in the preparation phase for a digital euro, emphasizing offline capabilities, high privacy, and instant settlements.Latin American and Asia-Pacific countries are also jumping on the CBDC bandwagon. Argentina is exploring a CBDC to mitigate economic instability and inflation, while Brazil is developing the digital real (DREX) for a planned launch in May 2024, focusing on privacy and infrastructure. The Reserve Bank of Australia and several commercial banks collaborated on a CBDC blockchain pilot in 2023. China, being a front-runner in CBDCs, completed its first international crude oil trade using the digital yuan, showcasing the global applicability of its digital currency. India and Japan are also piloting their own CBDCs, aligning with their respective economic growth forecasts. Nepal, despite its restrictive stance on cryptocurrencies, plans to develop a CBDC as well.Overall, the global interest in CBDCs is growing, with countries across different regions actively exploring and piloting their own digital currencies. This collaborative approach allows nations to share knowledge and expertise, contributing to the development and advancement of CBDCs on a global scale.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇮🇹 🇨🇭 🇦🇷 🇧🇷 🇨🇳 🇮🇳 🇯🇵 🇳🇵 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | European Central Bank (ECB), SIX Digital Exchange (SDX), Swiss National Bank (SNB), Banca d’Italia, Bank of Korea |
| Currencies | None |
| Securities | None |
