Bank of Israel reportedly engages in CBDC pilot run

The Bank of Israel, according to reports, has already issued a Central Bank Digital Currency (CBDC) via its pilot test of a Digital Shekel.

On Monday, The Jerusalem Post reported that Andrew Abir, the Bank of Israel Deputy Governor said the financial institution had begun conducting a pilot program for a virtual variant of shekel.

However, in an ironic twist, during a conference of the Fair Value Forum of IDC Herzliya, the bank official, despite confirming the pilot test was already underway, said he was not optimistic about the bank issuing a CBDC.

A bit of development

As far as a Central Bank Digital Currency is concerned, the deputy governor remains on the “safe side” of the matter.

“I had previously estimated that the chance of having a CBDC within five years is 20%. My estimate has increased a bit in the last year, mainly because other countries are advancing with it too,” he said, adding that now, for him, there is still less than a 50% chance for a central bank-issued digital currency.

As for the development, the Bank of Israel has not yet made a formal announcement on its website although last month, the financial institution said it was already preparing for an action plan to explore the benefits of a CBDC on the Israeli economy.

Not a fan of bitcoin

Although it would seem that Abir is willing to eventually have a CBDC integrated into the country’s economy, the story is different when it comes to bitcoin.

In fact, he criticized the asset as a means of payment. “What we are talking about is a payment system. Bitcoin is not a payment system, and it is not a currency. In the best situation, it is a financial asset, and in the worst case, it is a pyramid scam,” the Deputy Governor said.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/bank-of-israel-reportedly-engages-in-cbdc-pilot-run/