Bank of Israel Has Already Tested a Digital Shekel

The Bank of Israel has already carried out a pilot test on a central bank digital currency (CBDC), Deputy Governor Andrew Abir revealed.

• Abir revealed the news at a conference of the Fair Value Forum of IDC Herzliya, The Jerusalem Post reported Monday.
• After being asked if the Bank of Israel had already run a pilot on a digital shekel, Abir answered that it had.
• Abir noted he is not particularly optimistic about an Israeli CBDC actually being launched, however.
• He had previously said the chance of one being launched within five years was 20%. “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.”
• No formal announcement has been made by the Bank of Israel on the subject since early May, when it said it was preparing an action plan for the issuance of a digital shekel as part of an overall acceleration of its research into the subject.