The Bank of Israel is set to launch a sandbox for private sector players to experiment with a possible central bank digital currency (CBDC).
It is building an application programming interface (API)-based sandbox, deputy governor Andrew Abir said today (April 16). It will invite banks and fintech companies, among others, to develop use cases that will help design the digital shekel program.
Abir said the official announcement of the project will take place in the “coming weeks.”
The work is inspired by Project Rosalid by the Bank of International Settlements (BIS) and the Bank of England, Abir said.
Project Rosalid experimented with an API and found that the interface would work with different central bank ledger designs to facilitate payments. It also tested retail payment options including making online CBDC payments.
The digital shekel project, he said, is an “action plan” that will enable the central bank to be ready to issue a digital currency if the government makes that decision.
Read full article from centralbanking.com.
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