With the rate at which the digital currency is moving, each country might have their own central bank digital currency soon.
Just recently, the Reserve Bank of India reversed the crypto ban in India.
Also, Nigerian government made a U-turn on cryptocurrency as the Central Bank of Nigeria plans to issue its own central Bank digital currency.
In the latest news, the central bank digital currency of Israel is now at pilot testing stage.
“I had previously estimated that the chance of having a CBDC within five years is 20%,” said Abir.
“My estimate has increased a bit in the last year, mainly because other countries are advancing with it too, but still there is less than a 50% chance.”
There is no formal announcement by the Bank of Israel on the issuance of the digital shekel.
According to a report from the Jerusalem Post, Bank of Israel deputy governor, Andrew Abir, said the financial institution had started to conduct a pilot program for a digital shekel.
Speaking at a conference of the Fair Value Forum of IDC Herzliya, despite the fact that Abir confirmed that a pilot test was underway.
He added that he was not optimistic about the bank issuing a digital shekel, despite the fact he confirmed a pilot test was underway.
Prior to this time, the Bank of Israel has confirmed that it would be prepared to launch a digital currency.
The digital currency will be launched only if the benefits outweigh the costs and potential risks.
History of Israel Central Bank Digital Currency
The Bank of Israel started exploring cbdc four years ago.
In order to facilitate the research procedure, an interdepartmental group was formed to consider the cost benefits analysis of the Isreali CBDC.
In their report, the team reported that no advanced economy has issued a CBDC for general use.
Israel is back on track with their CBDC now under pilot testing as revealed by the deputy governor.