The Bank of Israel launches a digital currency pilot program, with the purpose of creating its central bank digital currency. Notably, this Israel CBDC will be based on the Ethereum blockchain.
Notwithstanding, some challenges are imminent for the project.
Furthermore, Many nations are currently working to get their own CBDC. Which of course, includes China, Japan, France, Sweden, and more.
More so, The central bank of Israel is joining the trend.
Currently, it’s still in the initial stages of issuing a CBDC. Meanwhile, They are choosing the Ethereum network to actualize this project.
Israel Targets CBDC
Additionally, Yoav Soffer, CBDC Project Manager at the Bank of Israel explains.
“We did a trial with Ethereum technology,..”
“not because we think that that’s necessarily the technology we’ll use,..”
“but because it was a technology that was available for us to get our hands dirty with,…”
“in order to understand its advantages and disadvantages.”
Furthermore, The Bank of Israel sets up teams to create a trial platform on the Ethereum blockchain. Then, issue a token representing CBDCs.
Consequently, it goes on to create digital wallets, where team members can exchange “imaginary digital shekels” within the bank.
Notably, Australia, Hong Kong, and Thailand use this same method for their CBDC projects.
More so, Israel takes into consideration the legal, economic, and technological implications.
Also, Soffer goes on to describe the initiative as “challenging.”
Thereby, he explains the difficulty it is to get to a completion of the testing project due to its complexity.
“In general, projects at the Bank of Israel have start and finish dates…”
“You know when they will end and what you need to achieve along the way…”
“We don’t know when this project will end, with all that that implies.”
So, Yoav Soffer concludes