The Bank of Israel has announced an open challenge to develop innovative use cases for its proposed central bank digital currency (CBDC), the digital shekel.
This initiative, tagged the “Digital Shekel Challenge,” is inspired by the BIS Innovation Center’s “Rosalind Project,” and is part of the Bank’s ongoing efforts to explore the possible issuance of a CBDC.
The Bank noted that it has created a technological prototype that simulates the core system and APIs of the digital shekel to support the challenge’s participants. Interested parties must respond to a “Public Call” and complete a registration form to access this experimental environment.
According to its announcement, participants from the private and public sectors, as well as academia, are invited to use the prototype to develop and test innovative payment solutions. These solutions can enhance existing applications or create new ones targeting various population groups, industries, or scenarios within the Israeli economy.
The submissions will be reviewed by a panel of experts, and the top projects will be showcased at a concluding conference.
Bank of Israel Deputy Governor Andrew Abir emphasized the significance of this initiative, stating,
“The Digital Shekel Challenge is another step toward the future of payment systems. It aims to create an innovative and competitive ecosystem for payments. The digital shekel’s success will rely on cooperation between the Bank of Israel and the private and government sectors.”
This challenge comes as many central banks globally explore the feasibility, benefits, and potential concerns of issuing digital currencies. A CBDC like the “digital shekel” aims to enhance the efficiency, security, and accessibility of the payment system. However, some stakeholders have raised issues about its privacy and security features.
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Meanwhile, the Israeli Central Bank also announced that it will hold a webinar on Sunday, June 9, at 16:00 to provide more information and engage with potential participants. Interested parties are invited to ask questions and seek further details about the challenge during this event.
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