Ethereum (ETH) Potential Home for Israel’s Central Bank Digital Currency

Ethereum ETH Potential Home for Israels Central Bank Digital Currency

There are again some positive signs for the Ethereum (ETH) network. Israel is said to be testing a central bank-issued digital currency (CBDC) on the network. This is according to reports from the Israeli financial daily Globes.

Bloomberg reports in a short article:

“The Bank of Israel has deployed Ethereum technology for an internal trial run of the digital shekel, Israeli financial daily Globes reported without saying where it got the information.”

For now, the spokesman for Israel’s central bank has not commented on the rumours. It would be an interesting step as more and more governments are investigating CBDCs, but often use a private blockchain instead of a public network such as Ethereum.

A private network consists of nodes approved by a central party such as a central bank. Such blockchains differ from blockchains such as Bitcoin (BTC) and Ethereum because anyone with a computer and internet connection can become a node in these networks.

What exactly the trial of Israel will look like is still unclear. More information about that will probably appear later. Nevertheless, it is an interesting and positive sign that Ethereum appears to be being used by a central bank.

The launch of studies on CBDCs by, for example, China and Europe seems to be a response to the emerging crypto market. Governments are beginning to worry that these cryptocurrencies could pose a threat. In addition, CBDCs offer various tools for more effective and direct economic measures.

A few days ago, two Chinese banks announced that they have installed 3,000 ATMs where citizens can get their digital yuan. In China, the CBDC project is therefore already at an advanced stage.