Israel Launches Pilot Testing of Its Own Cryptocurrency

The Central Bank of Israel has released the digital currency through a pilot test of the digital shekel. But the bank’s deputy governor, Andrew Abir, said he was wary of launching a full-blown CBDC in the country and called Bitcoin a “pyramid fraudulent”, The Jerusalem Post writes.

The Deputy Governor of the Bank of Israel, Andrew Abir, said the financial institution has begun a pilot program for the digital shekel.

Speaking at the IDC Herzliya Fair Value Forum conference, Abir added that he wasn’t optimistic about plans to release the CBDC digital currency.

At the time of writing, there was no official announcement of the digital shekel on the website of the Central Bank of Israel.

The financial institution announced plans of action to explore the benefits of CBDC for the Israeli economy in May.

Then the central bank intended to consider issuing a CBDC if the cryptocurrency meets the needs of the future digital economy and provides more efficient cross-border payments.

The institution noted that they want to reduce the use of cash and provide an opportunity for the population to make payments with a sufficient level of confidentiality.

Despite the readiness of the Central Bank of Israel to integrate cryptocurrency into the country’s economy, the deputy head of the institution recently criticized Bitcoin:

“This is a payment system. Bitcoin is not a payment system or currency. At best, it is a financial asset, and at worst, a fraudulent pyramid scheme. ”

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