The Bank of Israel recently announced the launch of the Digital Shekel Challenge as a way to promote the use of the digital shekel. This challenge is open to private, public, and academic institutions, who are invited to participate in the development of application solutions for the digital shekel.
Developers who choose to participate will have access to the Bank of Israel’s prototype digital shekel system and its application programming interface (API). They will be able to develop applications, conduct research activities, and explore the potential use of the system.
It is important to note that the digital shekel is not a cryptocurrency like Bitcoin or Ethereum. Instead, it is a digital version of regular fiat currency, with issuance controlled by the central bank. The issuance of “crypto shekels” aims to streamline the transfer of money by eliminating intermediaries such as banks and credit companies, consolidating these intermediary functions within the central bank.
The Bank of Israel has previously conducted experiments with the digital shekel, and this challenge represents the next stage in these experiments. By inviting various entities to participate in its development,
