CBDC is often seen by the crypto community as a risk rather than a solution for the economy because it can become a tool for governments to increase financial control over citizens and hinder the widespread adoption of crypto
[1]. However, from a certain perspective, CBDC can be deployed on blockchain, providing services that do not require traditional banks, increasing transparency, saving transaction costs, and being a safer alternative than stable coins currently on the market. crypto market
[2]. The Ethereum Foundation also welcomes the deployment of CBDC on the Ethereum blockchain
[3], and some CBDC pilots have taken place on Ethereum because Ethereum is the best blockchain in terms of synthetic criteria based on decentralization, security, flexibility and speed
[4].
Recently, an Israeli crypto firm, Bits of Gold, has launched a pilot program for the country's first-ever digital currency pegged to the Israeli Shekel - BILS. The pilot program is being conducted in collaboration with the Israeli Capital Market Authority (ICMA), so I consider BILS to be a CBDC of Israel. What's interesting is that BILS is deployed on Solana - a blockchain famous for its high speed of 65k tps and extremely cheap transaction fees, only 0.00025 USD per transaction
[5].
Youval Rouach, Bits of Gold’s co-founder and CEO: “We are proud to introduce BILS, a ground-breaking development that literally connects digital currencies into the Israeli economy. The introduction of BILS marks a significant progression in integrating digital currencies into the Israeli economy, while expanding financial accessibility” [6].Personally, I don't hate CBDCs too much if they are implemented more effectively than Venezuela's Petro
[7] and more transparently than what China is doing with e-CNY
[8] or Russia is doing with Digital Ruble
[9]. Israel is a country with advanced science and a stable economy, which would be an ideal place for CBDCs to be tested and show us the positive values of CBDCs.
I am also very happy that the Solana blockchain has been chosen, which is a recognition of the value and reliability of the Solana blockchain after 4 years of operation, and is also a signal that the competition between blockchains will not only take place on DeFi or GameFi but also in the field of CBDCs. Ethereum has already participated, and Solana will also be there to compete and develop.
I would like to know your views on Israel's CBDC on the Solana blockchain:
- Do you expect the positive values that Israel's CBDC will bring?
- Is Solana blockchain worthy of being chosen for this CBDC pilot?
- Are you ready to use CBDC on the Solana blockchain?
References:[1]
A Central Bank Digital Currency Would Be Bad for the US [2]
The Advantages—and Drawbacks—of Central Bank Digital Currencies[3]
Blockchain Solutions for Central Bank Digital Currency (CBDC)[4]
Mastercard’s CBDC pilot ventures into Ethereum and NFTs[5]
What Is Solana (SOL) and How Does SOL Crypto Work?[6]
Israeli Crypto Firm Launches Pilot for First Shekel-Backed Stablecoin[7]
Venezuela Terminates Petro Cryptocurrency After 5 Years[8]
China’s Digital Currency: The hopes and fears of the e-CNY[9]
Digital Ruble: Definition, How It Works, History, and Goals
Note:- My opinion was posted first in that topic, on Bitcointalk
- I leave the source link to avoid plagiarism accusation.
- I excluded/ included minor things from an original thread if necessary.