Bank of Hong Kong and Israel Are Collaborating to Test CBDC Cyber Risk

Bank of Hong Kong and Israel announced their collaboration with BIS Innovation Lab to examine the viability of a CBDC for the general public. The Bank of Israel says that the trial will be for CBDC cyber risk. In the suggested structure, the middlemen have no investment risk from clients with CBDC. It is expected to lower the risk and costs for the financial institutions involved. Israel is working with Hong Kong on a trial which will test a new digital currency, including against cyber security risks https://t.co/7mRt8YiBWw — Bloomberg Crypto (@crypto) June 16, 2022 Collaboration Between Bank of Hong Kong and Israel Over CBDC The Bank of Israel is collaborating with the Hong Kong Monetary Authority on trial. According to the bank, the trial will check new digital money. It will include its ability to withstand cyber security threats. The collaborative project will need a 2-tier CBDC. It’ll be starting in Q3 2022, according to the release. The Central Bank would be issuing the currency. They will later issue the currency through financial institutions such as banks. Israel is slowly but steadily returning to the concept of a CBDC. That’s after it abandoned its first attempt in 2018 when the Central Bank-appointed committee advised against making shekel’s digital form. Digital Ambitions Some experts think banks may develop their virtual currencies so that they can maintain the same level of control over decentralized currencies...