The initiative is to involve 18 commercial banks in Italy that are considering using blockchain technology in their operations. The main objective of the pilot project is to explore the potential of using blockchain for CBDC transactions, simplifying interbank queries and increasing the efficiency of document reconciliations.
As part of testing CBDC’s wholesale delivery capabilities, commercial banks plan to use a common ledger of interbank payments generated from private registries.
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“By embarking on the Leonidas project, the Italian banking industry aims to harness the potential of blockchain technology to ensure financial stability and consumer protection. Working together, we will lay the groundwork for a future in which CBDC plays a prominent role in the evolution of the financial landscape,” announced Silvia Attanasio, head of innovation at the association.
In press comments, a Bank of Italy spokesperson noted that European central banks are increasingly attracted to wholesale central bank digital currencies because of their relatively easy implementation compared to the complex nature of retail CBDCs.
Earlier, IMF Director Kristalina Georgieva said her agency had begun working on the concept of an infrastructure to ensure the interoperability of settlement in digital currencies issued by national central banks.