The Bank of Israel is working with the Hong Kong Monetary Authority to assess the central bank’s digital currency. The CBDC integrated project will have a two-phase strategy when it begins in the third quarter.
This means that once the central bank has issued digital money, it will be distributed to consumers through financial intermediaries.
The CBDC for sale is designed in such a way that consultants can manage it without putting their customers at financial risk. Israel and Hong Kong will examine whether this makes it less vulnerable to online threats.
CBDC’s “free” CBDC, according to the Bank of Israel, allows “less financial risk to the consumer, more money, cheaper costs, increased competition, and greater access.” This collaboration will also include the Bank for International Settlements’ Innovation Unit.
This is Israel very close to thinking about CBDC. When central bank employees opposed the release of the digital shekel version, the pre-2018 move was postponed. According to the International Monetary Fund, Israel is one of only 100 governments in the world considering withdrawing from the CBDC (IMF).
Nearly 140 million people have tried China’s digital yuan, especially at the last Winter Olympics in Beijing. The Bank of England’s top executive recently stated that digital currency will be in line with the central bank’s activities. The Bank of Jamaica officially recognised the CBDC as an official tender, making Jamaica the first government in the world to do so.
According to experts from Bank of America Corp., major banks will inevitably withdraw their digital assets. On the other hand, there is the danger of leaving the monopoly of money in private issuers such as a social networking or financially allocated network. However, large digital currencies, which may be wider, such as the digital currency or the digital euro, are at risk of losing compliance.
Read more: IMF recommends CBDCs have compliance and user-friendly payment features