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.
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