Bank of Israel Launches Digital Shekel Challenge for Innovative CBDC Payment Systems

Bank of Israel Launches Digital Shekel Challenge to Innovate CBDC Payment Systems

The Bank of Israel (BoI) has announced the launch of a digital shekel challenge aimed at fostering innovation in central bank digital currency (CBDC) payment systems. The challenge invites various stakeholders from both the private and public sectors to participate and develop cutting-edge payment solutions using digital shekel.

Inspired by Project Rosalind, a collaboration between the BIS Innovation Hub and the Bank of England, the initiative seeks to enhance efficiency and inclusivity in the payment system in Israel. Selected projects will have the opportunity to showcase their innovations at a dedicated conference, fostering collaboration and idea exchange.

BoI’s broader goal is to integrate CBDCs into the financial ecosystem, creating a more advanced and resilient payment infrastructure. The challenge will be implemented in three phases, starting with applications and presentations, followed by network access for selected projects, and concluding with a final presentation to judges.

BoI Deputy Governor Andrew Abir emphasized the importance of cooperation between the central bank and the private and government sectors for the success of the digital shekel. The initiative aims to prioritize original and innovative payment solutions, bridging the gap between the Web3 industry and government, including in decentralized finance.

Participants in the challenge will have the opportunity to build real-time CBDC payment systems for ordinary people, with a focus on niche markets. BoI believes that the digital shekel will not only benefit the economy but also gain public support, as transparency and accountability will be key components of its development.

Overall, the digital shekel challenge represents a significant step towards the future of payment systems, encouraging collaboration and innovation in the development of CBDCs.