The Bank of Israel has joined the process of introducing the CBDC, like other banks. Bank of Israel Deputy Governor Andrew Abir 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, he answered in the affirmative.
The idea of introducing the digital shekel discussed in the country for four years now. And now the Israeli authorities have decided to speed up the development and subsequent implementation of the digital currency.
The fact that the authorities intend to intensify this process, said the Deputy Governor of the Bank of the country Andrew Abir. During the conference on digital assets, he announced that the bank has begun the process of testing the electronic shekel.
During his speech at the conference, Abir indicated that the bank has launched a pilot project for digital currency. Interestingly, Abir himself is not too optimistic about the release of the digital shekel. He believes that the process of introducing the digital shekel will take a long time. And it will take at least five years before it will put into circulation. Moreover, in his opinion, the probability of the rapid introduction of the digital shekel within the next few years is no more than 50%.
The Israeli authorities first announced the idea of issuing a digital shekel at the end of 2017
However, the Bank of Israel website still does not have any official statements regarding the development or testing of the digital shekel. Although in early May, researchers at the Central Bank of Israel presented a report on the benefits of the state digital currency.
While the Israeli authorities have just begun the process of testing the digital shekel, other states are more advanced in this matter.
CBDC in other countries
Analytical data show that at least 80% of central banks in different countries intend to use CBDC in their operations. Despite the fact that their developments are also in the testing stage, some banks already have valid currencies. In particular, the Bahamas and Cambodia have done it. There are successes in this and Sweden. In this country, several stages of testing the e-krona have already passed. The checks concerned how commercial banking structures will be able to use the e-krona in their payment systems.
The Chinese authorities have advanced the most in this process. The digital yuan has already been implemented in several large provinces and cities, where the corresponding infrastructure is being deployed to work with the digital yuan.
Not so long ago, the Bank of France announced that it had experimented with CBDC, conducting settlements with securities. After the experiment is completed, reports will be presented on how effective the introduction of CBDC has been.
Thus, it can be stated that the central banks of different countries continue to experiment with digital currencies. At the same time, not all of them are trying to speed up the process. Perhaps the process of introducing the digital shekel will drag on for many years, and the Israeli authorities will monitor how other countries are implementing CBDC, adjusting their policies towards it.