The Central Bank Of Israel Has Used Ethereum Technology As Part Of A Pilot Project To Issue A National Digital Currency, Writes Globes . Test Reports Appeared A Few Days Ago, But The Name Of The Technology Involved Was Not Specified.
During The Tests, The Bank’s Information Technology Division Set Up A Pilot Environment Based On Ethereum Technology, Prepared Electronic Wallets And Issued A Token Representing The Israeli Shekel In Digital Form. The Ethereum Protocol In This Case Was Used To Launch A Limited-access Network, But The Cryptocurrency Itself And The Public Blockchain Were Not Used In The Process. Similar Tests Have Previously Taken Place In Australia, Hong Kong And Thailand. The Central Bank’s Task In This Project Was To Assess The Benefits Of Technology For The Economy, Business And The Legal Sphere.
In 2018, A Council Led By Former Israeli Central Bank Governor Karnit Flug Concluded That There Was No Practical Benefit To Issuing The Digital Shekel. Subsequently, Israel, Like Many Other Countries, Changed Its Attitude Towards This Issue. Israel, However, Has Not Yet Decided Whether The Launch Of The Digital Shekel Will Require The Development Of Appropriate Legislation. The Information About The Tests Was Disclosed By The Deputy Governor Of The Bank Of Israel, Andrew Abir, After The Department Was Criticized For The Lack Of Movement In This Direction, Adds Globes.
According To The Publication, The Bank Of Israel Also Tested The Possibility Of Issuing Certificates Of Ownership Of A Vehicle In The Format Of Non-fungible Tokens (Nft) And Carried Out An Operation To Transfer Them. The Transfer Of The Certificate Was Instantaneous And Did Not Require The Involvement Of Centralized Intermediaries.
At The Same Time, Abir Noted That The Final Decision On The Issue Of The Digital Shekel Has Not Yet Been Made. He Also Questioned The Value Of Bitcoin As A Payment System, Calling It “A Financial Asset At Best, And A Pyramid Scheme At Worst.”
“in The Past, I Thought That The Probability Of Issuing A National Digital Currency Within Five Years Is No More Than 20%. In 2020, The Probability Has Increased As Many Other Central Banks Have Started Working On Their Own Digital Currencies, But I Still Believe That This Probability Is Below 50%, ”explained Abir.
