Wednesday, May 25, 2022
Home Crypto News Market The Bank Of Israel Aims To Launch Its CBDC On Ethereum

The Bank Of Israel Aims To Launch Its CBDC On Ethereum

- Advertisement -

For now, central banks around the world are still working on developing and testing their own CBDCs, but there are new ones that are joining the race all the time.

The Bank of Israel, reportedly just launched a cryptocurrency pilot program of its own, with plans to create a CBDC using Ethereum’s network.

However, it appears that the project is bound to run into a number of challenges.

So far, there are several major nations that are taking a lead in the CBDC development, including China, Sweden, Japan, and France. All of these countries were working on their own CBDCs for years at this point, so they do have quite the advantage on the newcomers such as the central bank of Israel.

Israel is in the initial stages of CBDC development, according to recent reports, and they decided to use Ethereum. The central bank’s CBDC Project Manager, Yoav Soffer, explained:

“We did a trial with Ethereum technology, not because we think that that’s necessarily the technology we’ll use, but because it was a technology that was available for us in order to understand its advantages and disadvantages.”


The purpose of this trial is simply to try and identify the advantages and disadvantages of digital currencies, and for that alone, Ethereum is just as good a solution as anything else.

However, Soffer did say that the initiative has been very challenging. He pointed out the complexity of the project, which makes it difficult to predict how long the testing of the project might last, or when it will end.

The challenges are many, starting with uncertainty about whether a digital currency would serve the local population’s needs, in the first place. The infrastructure for a product of this kind is not ready to survive in the long term, and there is no backup solution in case of the network’s breakdown.

“It’s rather challenging to run a project like this. In general, projects at the Bank of Israel have start and finish dates. You know when they will end and what you need to achieve along the way. We don’t know when this project will end, with all that that implies.” 

And, of course, the bank has to create a CBDC to be accessible and competitive compared to other types of payment.

China is currently leading the CBDC race with its digital yuan almost ready for launch. In fact, the public trials for digital yuan have been going on for nearly two years now after the completion of its development in 2019.


- Advertisement -


The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Albert Brown
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.


Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Dogecoin Creator Says Terra 2.0 Launch Will Show the Dumbness of Cryptocurrency Gamblers

The Dogecoin creator still thinks the upcoming Terra 2.0 will encounter major issues along the way.   window.coinzilla_display...

Binance, Huobi, and Other Top Exchanges To Support Terra 2.0

Terra 2.0 Has Passed Voting Stage, And Top Exchanges are Already Getting Onboard. window.coinzilla_display = window.coinzilla_display ||...

Women in Finance: How Could Cryptocurrency Help Breach the Gender Gap?

The Financial Conduct Authority (FCA) has insisted that leadership boards of listed companies should be comprised of at least 40% women. Additionally, at least...

Can Quitriam Finance (QTM), Cardano (ADA), And Hedera (HBAR) Become Market-Leading Coins?

The number of cryptocurrencies on the market is soaring every day, making investing in them increasingly difficult due to the amount of opportunities. Here...

Lido Finance Will Not Launch on Terra 2.0 as Community Votes Against the Move

The Lido Finance community does not want the project to relaunch on Terra 2.0. As Terra edges closer to its much-anticipated fork that will give...

Terra’s Do Kwon Refuses Claims That He Lobbied Korean Exchanges To Accept Terra 2.0

Terra’s Do Kwon Refutes Claims That He Lobbied For Terra 2.0 To Be Accepted By Korean Exchanges. Reports are circulating in the crypto space that...

You Can Now Pay For Hotels, Airlines, Rental Services Worldwide With Shiba Inu as XcelTrip Adds Support for Shib

  Shiba Inu holders can now book 2.30 million hotels and over 450 airlines using their SHIB holdings. ...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.