The Bank of Israel launches the Digital Shekel Challenge
The Bank of Israel continues to promote the idea of the digital shekel, launching a new pilot project called the Digital Shekel Challenge. This initiative aims to study the possibilities of creating and implementing central bank digital currency (CBDC) and developing its functional capabilities.
Testing the Digital Shekel Prototype
According to the press release from the Bank of Israel, the project’s goal is to test the technological prototype of the digital shekel and its API interfaces. This will allow payment service providers and other interested parties to access the application and propose new ways to use the digital shekel in various payment systems.
Collaboration for Success
Deputy Governor of the Bank of Israel Andrew Abir stated that the project’s success depends on effective cooperation between the bank, the private sector, and the government. «We aim for the financial industry in Israel and beyond, as well as a wide audience of payment experts, to actively participate in the development of CBDC,» he noted.
Promoting Payment Innovation
As part of the pilot project, participants will be required to propose original and innovative payment applications using the digital shekel. The Bank of Israel will prioritize solutions that offer new and efficient payment methods using the new digital currency.
Looking Towards the Future
The Bank of Israel first began researching the possibility of creating a digital shekel in 2017. In 2021, a special department was established for further study and potential implementation of the digital currency, highlighting the country’s ambition to be at the forefront of financial technologies and innovations.
Driving Financial Technologies Forward
The launch of the Digital Shekel Challenge is an important step towards the development of financial technologies and may contribute to the establishment of new standards in the field of digital currencies and payment systems.
