Bank of Israel pilots CBDC efforts with testing on Ethereum

Israel's central bank has allegedly completed a pilot for a central bank digital currency (CBDC) on Ethereum. The claim was made by the Israeli financial news site Globes and later reported by BNN Bloomberg.

Bank of Israel pilots CBDC efforts with testing on Ethereum

The report alleged that the Bank of Israel (BOI), the central bank of Israel, completed its pilot in an experimental in the closed environment based on Ethereum's architecture, involving the trial issuance of tokens representing digital shekels and transactions between digital wallets. 

Globes also claimed that as part of its pilot, the bank has successfully tested its ability to program a car ownership certificate transfer using nonfungible digital tokens (NFTs) and completed a transaction wherein NFT payment was made the condition of the certificate's transfer and vice versa. The transaction was performed successfully without any risk or need for a central intermediary.

The application shows a possible example of what payment services providers can build. The Bank Of Israel has also asked industry experts to propose various smart applications that could prospectively be built upon the infrastructure of a future digital shekel.

Globes however contended that the central bank has not been forthcoming about its current experimental CBDC research. 

The BOI's deputy governor only revealed that a preliminary CBDC pilot was in fact already being conducted during the discussion held at the Fair Value Forum at Herzeliya IDC earlier this month.

Read: China debuts with blockchain based digital yuan salary in Xiong’an

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