The Memorandum of Understanding (MoU) between the two countries would aim toward central bank CBDC cooperation on IT and payments systems areas.
Two central banks have signed a Memorandum of Understanding (MoU) on key areas of the crypto space. The Bank of Korea and the Bank of Italy, the two signatories, have agreed to work together on IT and payment systems. In a press release, the Bank of Italy also shared that central bank digital currencies (CBDCs) would be a matter of cooperation between the central banks. The central bank CBDC cooperation and its findings could be significant for the crypto industry.
The Bank of Italy stated, “In particular, the Memorandum of Understanding provides for the mutual sharing of knowledge and information on the topics of ICT technologies in support of real time settlement systems (RTGS) and the Central Bank Digital Currency,” in a translated version of its press release. Senior official of the central bank, Luigi Federico Signorini, signed the agreement.
The collaboration between the two central banks is important for CBDCs due to their experience in the subject. For instance, the Bank of Korea has been keen on exploring CBDCs. Recently, the central bank said it would test deposit tokens with the help of thousands of citizens. The CBDC pilot project of the Bank of Korea started in October 2023. It aims to build infrastructure for digital currencies.
Meanwhile, officials of the Bank of Italy have supported using digital ledger technology in the past. Italy, as a part of the European Union, will also follow crypto rules under the MiCA regulation.
CBDC use cases have gained prominence in the recent past as central banks race to test and deploy CBDCs. As CBDCs gain popularity, their common applications, like cross-border payments and other transactions, could become easier.
Follow Millionero for more such news!