The central banks of Israel and Hong Kong want to collaborate on a study of the national cryptocurrency.
Israel is slowly returning to the notion of a CBDC after abandoning its original endeavor in 2018 when a central bank-appointed committee advised against creating a digital version of the shekel.
The Bank of Israel is on trial with the Hong Kong Monetary Authority to evaluate new digital money, including its resistance to cyber security threats.
The 2-tier system will be used in the joint project. In the third quarter of 2022, it will begin. Consumers will be able to access digital money through intermediaries, lowering the financial risks associated with its use.
Banks in both nations are investigating if this will make crypto less vulnerable to hackers and cyberattacks.
CBDC, according to predictions, will give more liquidity and allow intermediaries to compete, allowing bitcoin transactions between the two nations to be more widely accessible.
Despite the fact that research into digital currencies is still in its early stages, the International Monetary Fund estimates that over 100 nations have either implemented or are contemplating CBDCs. China is one among them, with the digital yuan having previously been tried by about 140 million individuals, including Olympic enthusiasts in Beijing.