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Israel and Hong Kong Team Up to Test Digital Currency Cyber Risk

  • Bank of Israel, Hong Kong Monetary Authority to work on trial
  • Currency to be distributed by an intermediary, tested for risk
The Bank of Israel in Jerusalem.

The Bank of Israel in Jerusalem.

Photographer: Ariel Jerozolimski/Bloomberg

The Bank of Israel is working with the Hong Kong Monetary Authority on a trial which will test a new digital currency, including against cyber security risks, the Bank of Israel said. 

The joint project, which will start in the third quarter, will use a two-tier central bank digital currency (CBDC), it said in a statement. It will be issued by the central bank and then distributed by financial intermediaries like banks.