G20 TechSprint 2022 Drives CBDC Innovation for Financial Inclusion and the Underbanked

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By Sam Gazeley | 3Q 2022 | IN-6605

 

Hong Kong and Israel Next to Launch a Solution?

NEWS


The central bank of Israel is currently exploring the possibility of launching a retail central bank digital currency (CBDC), in partnership with the Hong Kong Monetary Authority (HKMA) and the Bank for International Settlements (BIS) with the view of achieving a launch over the next few months. The Bank of Israel (BOI), despite widespread support from the public for the digital currency, has still demonstrated reservations around the launch of a CBDC, instead having conducted research on the proposed digital shekel for many years. Dubbed the Selah Project, it will be led by the BIS Innovation Hub Centre in Hong Kong and will begin in 3Q 2022 with the view of creating a more efficient payment system that will increase competition in the local payment market.

The Selah Project will trial a bifurcated model where the central banks in question interact with the consumer directly, removing intermediaries, such as banks and other financial institutions. The primary risk with this model is the potential for disintermediation where the population may opt to invest all monies…

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