The Bank of Israel is launching a “digital cloud challenge” to create CBDC payment systems
The Bank of Israel has launched a “digital wallet challenge” to develop CBDC payment solutions. Participants in the challenge will receive a prototype system to create new uses for digital downloads. The Bank of Israel is scheduled to hold a webinar on June 9 for details.
In a significant move towards digital currency adoption, the Bank of Israel (BoI) has announced the launch of the “Digital Shekel Challenge”.
This initiative aims to develop new payment solutions using the digital currency of the Central Bank of Israel (CBCC), which was first reported in 2021.
Initiated by the “Rosalind Project” from the BIS Innovation Centre, the challenge marks a major step in the BoI's action plan to roll out the digital landscape.
What is a digital upload test?
The Digital Infrastructure Challenge is designed to invite participation from a wide range of stakeholders, including private companies, public institutions and academic researchers.
Participants will have access to a technology prototype that simulates the core functions of a digital upload system with an API layer. This environment allows them to create and test real-time payment applications tailored for public use.
The exam is structured in three stages. Initially, interested parties should respond to the call for participation by registering in the prescribed form.
Selected participants will have access to a test environment where they can begin developing their projects.
The final phase involves presenting these projects to a panel of experts, who will evaluate them on their originality, innovation and relevance to the Israeli economy.
The Bank of Israel is actively exploring the possibility of CBDC.
The BoI has been exploring the potential of CBDC since 2017, accelerating its efforts by 2021.
A public consultation conducted by the bank showed overwhelming support for the digital currency, although privacy concerns were also raised.
Digital wallets are intended to provide privacy protections at least equal to existing digital payment methods, which may set higher standards.
Internationally, the BoI has successfully piloted retail CBCC systems and engaged in collaborative projects such as Project Cella with the Central Bank of Hong Kong and the BIS. These efforts aim to balance consumer access, competition, cybersecurity, and the benefits of traditional money.
The BoI will hold a webinar on June 9, 2024 to provide more information and answer questions. Participants and interested parties can register for this event to get more insights about the challenge.
The Digital Shekel Challenge represents a bold step to modernize Israel's payments infrastructure, aiming to leverage cutting-edge technology to drive efficiency and innovation in the financial sector.
Bank of Israel Deputy Governor Andrew Abir emphasized the importance of collaboration for the success of the digital shekel.
“The digital wallet challenge is another step towards the future of payments, aiming to create an innovative and competitive ecosystem,” said Abeer.
The Deputy Governor pointed out that the Digital Hub initiative will enhance collaboration between the Central Bank, the financial industry and other stakeholders both locally and internationally.
