Israel joined the CBDC race, testing of Digital Shekel started

Many countries out there are working on developing their own central bank backed currency, considering the demands and public interest towards digital currencies

Recent reports stated that the biggest economies around the world are working towards their own digital currency and are constantly exploring ways for it. Israel too might not want to be left behind in the quest of developing its CBDC. For this regard the Bank of Israel started testing the nation’s own digital currency. The information about the project had been revealed by Yoav Soffer. He is the head of the project of digital currency in theBank of Israel. 

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Although the official launch date for digital Shekel had not been disclosed yet. The project is still in its development stage. Head of the project has said that the assessment is going on about the impact of digital currency on the banking system and also about what will be the price of it.

The digital Shekel of Israel is being developed on Ethereum Blockchain. Soffer has stated that they are putting all the resources possible from people needed for the project to finances. Digital Shekel will be an innovation in the payment industry and make competition in the industry. 

The plan for the project came in front of authorities in 2018, but it had not been initiated at the moment. Some members of the team set up by the bank for the project did not agree for the same. But now looking at the situation where every other country is in the project, Israel’s bank authorities started again the project.

As mentioned earlier, some countries have already developed their digital currencies and even launched them. At the time Bank of America’s some experts say adoption of digital currencies by central banks is inevitable as slowly the countries will get the potential of the technology. China is working for its digital currency furiously and even initiated testing of digital currency related wallets. Mexico showed its desire that it will be launching its CBDC in two years. However the US is getting late for the project as of now, the report regarding the CBDCproject in the country has still stuck at Federal Reserves and the same goes with India, where discussions about it are still going on.