18 Italian Banks Forge Partnership For CBDC
The Associazione Bancaria Italiana (ABI) and the Bank of Italy collaborated to bring together a group of banks in a pilot programme for a central bank digital currency (CBDC). This venture, known as Project Leonidas, involves 18 commercial banks utilising blockchain technology. The primary goal is to investigate blockchain applications that support financial stability and consumer protection.
Commercial banks are using a shared ledger for interbank payments as part of this effort, with a preference for private ledgers over publicly disseminated ones. Through daily reconciliations, the goal is to streamline interbank requests and enhance efficiency.
Surprisingly, this study resembles Spunta, another blockchain-based project launched by Italian financial institutions to eliminate the need for monthly reconciliations.
(With inputs from Shikha Singh)
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