In pursuit of not falling behind in its effort to develop a digital currency supported by the central bank (cbdc), policy makers in israel reportedly tested the views of stakeholders to determine the risks and limitations of a national digital currency.
yoav soffer, the head of the bank of israel’s digital project, announced the trial, as reported by bloomberg. He noted that knowing the opinions of stakeholders is an ongoing process, although the digital shekel is still in its developmental phase and no specific launch date has been set.
He added that some of the challenges associated with the roll-out of the digital currency are assessing the impact of the currency on the banking system and determining the cost of the token.
The Shekel built on the Ethereum grid.
the proposed digital shekel is being built on the ethereum network, as cryptopotato outlined recently. According to Mr. Soffer, the project has been extensively tested and the team is working on additional technical studies.
“right now, we are increasing the resources devoted to the digital shekel project, both in terms of finances and people,” he said. “a digital shekel has great potential to increase competition and innovation within the payment industry.”
The Bank of Israel's recent concerted effort to explore the perspective of a digital shekel came after a previous attempt in 2018. The team put in place by the central bank had advised against establishing a digital token at that time. However, with the world's largest economies actively seeking out digital versions of their currencies, the Bank of Israel is taking another look at its outlook.
A number of central banks have already launched CBDCs.
a few countries, such as the bahamas and nigeria, have already launched digital versions of their currencies. It is in accordance with the opinion of the experts of the Bank of America. Which has announced that the adoption of CBDCs by central banks is inevitable that countries realize the potential of technology.
China is also considered to be a very advanced country in CBDC terms. the world’s most populated country has initiated multiple tests with locals and released digital yuan wallet apps for android and ios users.
Photo courtesy of Business Standard.