Central Bank of Israel Testing Ethereum Tech in Digital Shekel Trial
The Central Bank of Israel plans to issue a digital shekel using Vitalik Buterin’s blockchain platform Ethereum. Currently, other major countries are trying to develop a digital version of their currencies. While China is working on the DCEP, Japan, South Korea, France and the EU have also made public their intentions to launch CBDCs (central bank digital currencies).
the Bank of Israel plans to use Ethereum, the second-largest blockchain platform, to launch a digital version of Israel’s currency, the shekel.
In May, the central bank issued a report concluding that the digital payment system could have a positive impact on the economy by simplifying payment processes while providing security to both parties in a transaction.
The bank has also put out a call for smart application ideas that could run on the digital infrastructure.
Monetary authorities from Sweden to China are working on their own digital currencies as the dwindling use of notes and coins threatens to upend traditional payment methods. The emergence of cryptocurrencies such as Bitcoin has added to pressure on central banks to ensure they have a viable alternative before unregulated payment forms take over.
Ethereum was the first blockchain to host fully functioning computer programs known as smart contracts that allow users to create new cryptocurrencies.