Israel to Launch Digital Shekel Test for Payment
The Bank of Israel (BoI) is speeding up efforts to develop its central bank digital currency (CBDC), dubbed the “digital shekel.” In a recent update on May 28, the bank revealed plans for the CBDC’s payment use case through the ‘Digital Shekel Challenge’ experiment, a key part of its action plan for the potential issuance of the CBDC.
The central bank stated in a press release that it plans to launch the “Digital Shekel Challenge,” an experiment inspired by Project Rosalind, a joint initiative between the Bank for International Settlements (BIS) and the Bank of England focused on digital currency API development.
As part of this challenge, Israel’s central bank will provide a sandbox environment and API layer, inviting private, public, and academic participants to build real-time CBDC payment systems for public use.
JUST IN: Bank of #Israel Launches #Digital Shekel Challenge. pic.twitter.com/71NwUy1bgX
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The program will have three phases – applications/presentations, access to the new network for selected projects, and a final presentation to judges.
The BoI stated it would prioritize “original and innovative” payment applications, whether improvements to existing systems or entirely new solutions, including for niche use cases.
Expressing his support for the digital shekel, BoI Deputy Governor Andrew Abir stated that the CBDC will be developed transparently by the central bank rather than anonymously.
“The success of the digital shekel will rely on collaboration between the Bank of Israel, the private sector, and the government,” Abir said. “Through this challenge, we are allowing the financial industry from both Israel and abroad, as well as a broad range of payment stakeholders,
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