Bank of Israel confirms pilot project for CBDC

Israel conducted a pilot test of a central bank digital currency (CBDC), deputy regulator Andrew Abir said. The Jerusalem Post reports.

According to the publication, the official mentioned the project at a conference at the Interdisciplinary Center in Herzliya. When asked whether the Bank of Israel had conducted an experiment with the digital shekel, Abir replied in the affirmative.

He added that he is not optimistic about a real launch of the CBDC:

“I used to think that the chance of obtaining a CBDC within five years was 20%. Over the last year my assessment has risen somewhat, largely because other countries are also moving ahead with it [digital currency]. But the probability is still less than 50%.”

In late 2017, Israeli authorities first floated the idea of issuing a digital shekel.

In May 2021, the central bank presented a working paper outlining the CBDC model and its benefits for subsequent public consultations.

In June, ECB warned of problems for central banks in the absence of their own CBDCs.

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