According to Foresight News, the Central Bank of Israel has announced the initiation of a 'Digital Shekel Challenge' aimed at developing applications in the payment sector. The bank has stated that it has constructed a technical prototype that simulates the core of a digital Shekel system. This system can be accessed by payment service providers to offer payment options to the public.
Despite years of exploring the technology, the Central Bank of Israel has not yet decided whether to issue a Central Bank Digital Currency (CBDC). The 'Digital Shekel Challenge' is a step towards understanding the potential applications and implications of such a digital currency system.
