Bank of Israel adopts Ethereum for digital shekel trial

Ethereum Photo: Shutterstock

The Bank of Israel IT division has set up digital wallets into which team members of the venture can transfer "imaginary digital shekels" to each other.

The Bank of Israel has adopted Ethereum blockchain technology for an internal pilot project to examine the digital shekel, a source close to the matter has told "Globes." Ethereum is the world's second biggest cryptocurrency after Bitcoin.

To implement the project the Bank of Israel IT department team has issued a token based on the blockchain technology of Ethereum, which represents digital shekels, and has set up digital wallets into which team members of the venture can transfer "imaginary digital shekels" to each other within the Bank of Israel.

At this stage no real money is involved and the digital transfers are only part of a trial. Use of Ethereum is within a closed network and is in no way connected to the general Ethereum currency network.

This technology is being used in other trials conducted by central banks worldwide including in Australia, Hong Kong and Thailand.

As part of the pilot project being carried out by the Bank of Israel, the economic, business, legal and technological aspects of the process are being examined.

Published by Globes, Israel business news - en.globes.co.il - on June 23, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Ethereum Photo: Shutterstock
Ethereum Photo: Shutterstock
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