According to reports from Israel, the government has piloted a CBDC (central bank digital currency) to work. According to the statement of the Bank of Israel, CBDCs are used as infrastructure. Ethereum Tested using the blockchain.
The Central Bank has announced that it has made an Israeli CBDC project using the Ethereum blockchain for its digital currency work. While there is no clear explanation about what the technology used will be in the final stage, Yoav Soffer, Project Manager of the Bank of Israel CBDC, said:
“We did a trial with Ethereum blockchain technology; Of course, this does not mean that we will definitely use this technology. We needed to test this to understand the advantages and disadvantages of the Ethereum blockchain.”
As the CBDC used in the pilot trial was conducted on Ethereum with a digital wallet, they had the chance to personally test the digital and technical implementation of “Digital Shekels (Israeli currency)”. In the pilot study, participants were given shekels in a digital wallet, and users transferred these shekels to another wallet. The Ethereum blockchain technology used in the pilot phase was also stated to be quite different from the underlying technology of ETH.
Bank of Israel Examines Economic, Legal and Technological Aspects of CBDC
The Bank of Israel, on the other hand, studied and tested the economic, legal and technological aspects of the CBDC while these pilots were in progress. It is among the news that the central banks of Australia, Hong Kong and Thailand used the technology that they used before.
“It is very difficult to run a project like this. Generally, projects at the Bank of Israel have start and end dates. You know when they will end and what you have to accomplish along the way.”
“We don’t know when this project will end,” Soffer said at a conference last week.
While China is by far the leading country in the CBDC race of countries, China is very close to launching its digital Yuan project. Although China completed the testing phase about two years ago, it still has not released the digital Yuan to the markets.
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