You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

Israel’s Central Bank to Roll Out Sandbox for CBDC Experiments

The Bank of Israel is set to unveil a sandbox environment dedicated to testing the potential applications of CBDCs (Central Bank Digital Currencies). This move aims to fine-tune the design of the digital shekel and ensure its readiness for handling sophisticated use cases.

Andrew Abir, the deputy governor of the central bank, revealed plans for the project in a statement on Tuesday, stating, “We are currently in the process of building the system and plan to make an official announcement in the upcoming weeks.”

Sandbox environments offer a controlled setting for assessing new digital technologies, including financial innovations, before widespread adoption. Governments utilize sandboxes to encourage innovation by allowing companies to experiment with these technologies within flexible regulatory frameworks.

This sandbox, driven by APIs (Application Programming Interfaces), will welcome participation from financial institutions, fintech firms, and other relevant stakeholders. It will serve as a collaborative space for the development and testing of cutting-edge applications tailored to the digital shekel.

Digital Shekel Will Offer Stability, Contrary to Crypto Volatility: Bank Official

During his speech, Abir characterized the digital shekel as a “liability of the Bank of Israel to the public.” He highlighted its similarity to physical cash, emphasizing that holding it does not involve credit risk. Additionally, he clarified the distinction between the digital shekel and cryptocurrencies.

“The digital shekel will not be created by some anonymous Satoshi Nakamoto,” the official emphasized. “Everyone will know the identity of those behind the digital shekel and who is accountable for it – it will be the central bank, the same Bank of Israel that backs the familiar and trusted cash.”

He asserted that the value of the digital shekel would remain stable, unlike cryptocurrencies, which are prone to significant fluctuations.

“A digital shekel will always have the same value as one cash shekel, which is consistently valued as one shekel in a bank account,” he stated.

Bank of Israel’s Plan for Digital Shekel Accessibility

The official further emphasized the utility of a CBDC, explaining that it would enable a range of transactions currently unfeasible with cash, particularly within the e-commerce sector.

The digital shekel will operate on a two-tiered model, allowing various entities to engage as Payment Service Providers or Additional Services Providers within the system.

Significantly, the Bank of Israel plans to broaden access to the platform it develops, extending beyond traditional banks to include payment firms, fintech companies, consumer clubs, and other interested parties.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

Azuro Protocol Partners With zkSync Hyperchain Sophon
30.05.2024By
PayPal’s PYUSD Stablecoin on Solana Introduces ‘Confidential Transfers’ for Enhanced Privacy
30.05.2024By
Former Consensys Employee Launches Stablecoin ‘USD3’
30.05.2024By

Latest news

Azuro Protocol Partners With zkSync Hyperchain Sophon
30.05.2024
PayPal’s PYUSD Stablecoin on Solana Introduces ‘Confidential Transfers’ for Enhanced Privacy
30.05.2024
Former Consensys Employee Launches Stablecoin ‘USD3’
30.05.2024
NFTs are Highly Susceptible to Fraud and Scams: US Treasury Report
30.05.2024
Ethereum ETF Approval Was a Political Decision, Says Bloomberg Analyst James Seyffart
30.05.2024
Joint Global Tax Group Issue Crypto Risk Indicators to Financial Institutions
30.05.2024
Judge Throws Out DEBT Box Case, Orders SEC to Pay $1.8M
29.05.2024
Canada Warns of Rising Pig Butchering and Crypto Investment Scams
29.05.2024
Iggy Azalea’s MOTHER Memecoin Hit With Insider Activity Claims After Alleged Sahil Arora Scam
29.05.2024
DeFi Data Firm API3 Raises $4M in Funding Round Led by DWF Labs
29.05.2024