Bank of Israel chooses ethereum tech for its CBDC pilot testing 

Israel has preferred Ethereum over Ripple’s private version of the XRP ledger for testing its digital version of the shekel, the country’s official currency. 

In a report published by Bloomberg, the Bank of Israel acknowledged that adopting a digital form of shekel would innovate the country’s payment system, and as a result, improve its economy. 

The central bank also highlighted the security that digital shekel can provide for both the citizens and the government. It has also expressed its interest in using smart contracts together with the Ethereum technology. 

Rise of unregulated payment forms

Governments and central banks throughout the world are concerned about the rise of cryptocurrencies and the declining usage of notes and coins. 

These two fast-rising situations give way for unregulated digital payment forms to arise, which exposes citizens to more risk and fraud because of the absence of protection from the government. 

On Ripple’s part, even if it was trumped by Ethereum as Israel’s tech of choice, it remains active in helping central banks all over the world. 

It provides highly secure management of Central Bank Digital Currencies through its CBDC Private Ledger, which is based on the same blockchain tech used in Ripple’s open-source XRP Ledger. 

More about XRP’s private ledger

Ripple’s CBDC Private Ledger is specifically designed to issue highly secured and reliable currencies, in fact, it has become so successful that it has already issued 5,400 currencies for the past 8 years. 

The digital payment network also said that its private ledger has the capacity to handle tens of thousands of transactions per second which according to the company, is 61,000 times more efficient than public blockchains. 

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/bank-of-israel-chooses-ethereum-tech-for-its-cbdc-pilot-testing/