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Bank of Israel to test the feasibility of CBDC

Friday 17 June 2022 13:35 CET | News

Israel's central bank has teamed up with the Hong Kong Monetary Authority and the Bank of International Settlements' (BIS) Innovation Lab to test the feasibility of a central bank digital currency (CBDC) for retail.

The test will be cyber-secured and in the proposed model, the intermediaries will have no financial exposure from customers holding or transferring CBDC, resulting in reduced risk and costs, as the bank said.

The so-called Sela project, led by the BIS Innovation Hub's Hong Kong centre, is planned to begin in the third quarter of 2022 and findings will be published by the end of the year. The Bank of Israel has stepped up its research and preparation for the possible issuance of a digital shekel to create a more efficient payments system after first considering issuing a CBDC in late 2017.

The joint project will explore the feasibility of a two-tiered architecture where there is no financial exposure of the intermediaries involved in the transaction, unlike traditional ways of central bank funds being provided to the public via commercial banks.

More: Link


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Keywords: CBDC, central bank, digital currency, digital assets, partnership
Categories: DeFi & Crypto & Web3
Companies: Bank of International Settlements, Bank of Israel, Hong Kong Monetary Authority
Countries: Israel
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DeFi & Crypto & Web3

Bank of International Settlements

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Bank of Israel

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Hong Kong Monetary Authority

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