Hong Kong Monetary & Bank of Israel Partnering to Test CBDC (Central Bank Digital Currency)
Bank of Israel is collaborating with Hong Kong Monetary to test a new cryptocurrency along with its cybersecurity risks.
This CBDC project will be making use of the two-tiered system after getting initialized in the third quarter. After being approved by the Central Bank, with the help of financial intermediaries, digital currency would be distributed to the consumers.
Israel Bank is striving to develop a design for retail CBDC to give their customers an advantage of financial exposure. Hong Kong has also announced to test the parts by both Israel and Hong Kong to analyze whether the system is vulnerable to cyber-attacks and severe threats.
Bank of Israel has announced several advantages of a newer CBDC system, including “cheaper financial expenses, lower risks of costs, greater access, more refinancing, and bigger competition”.
It is also known that within this collaboration, the Bank for International Settlement’s Innovation Unit will also be participating.
For the first time, only one country is known to accept CBDC as legal tender, Jamaica, as its central bank has permitted it to move forward with CBDC.
Since the Bank of Israel has announced such collaboration, the customers have been aroused to welcome a newer CBDC with its background containing the Bank of Israel and Hong Kong Monetary.
Without delay, the project will be carried on forward with efficient productivity