Topic: Are you ready to use CBDC on the Solana blockchain? (Read 44 times)

The crypto community is wary of Central Bank Digital Currencies (CBDC) viewing them as a threat to financial freedom and crypto adoption due to potential government overreach ^[1]. However, CBDC deployed on blockchains like Ethereum offer intriguing possibilities. These CBDC could bypass traditional banks, increase transaction transparency, reduce costs, and potentially be more secure than existing stablecoins ^[2]. Notably, the Ethereum Foundation itself is open to CBDC deployment on their platform ^[3], and Ethereum's strong performance in decentralization, security, flexibility, and speed makes it a prime candidate for CBDC pilots ^[4].

Israeli crypto firm Bits of Gold is leading a pilot program for BILS, the first digital currency pegged to the Israeli Shekel. This pilot, conducted in cooperation with the Israeli Capital Market Authority (ICMA), paves the way for exploring a potential CBDC for Israel. What makes BILS interesting is its technical foundation. The developers opted for the Solana blockchain, known for its impressive speed ~65K tps and minimal transaction fees ~ 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].

While concerns exist regarding some CBDC like Venezuela's Petro ^[7] or the lack of transparency surrounding China's e-CNY ^[8] and Russia's Digital Ruble ^[9], I believe CBDC implemented effectively can offer significant benefits. Israel, with its strong technological infrastructure and stable economy, could be an ideal testing ground for a CBDC. This could serve as a showcase for the positive aspects of CBDC.

The selection of Solana blockchain is a promising development. It recognizes the value and reliability Solana has established over its four years of operation. This also signifies the expanding role of blockchain technology beyond DeFi and GameFi, reaching into the realm of CBDC. With Ethereum already involved, Solana's participation fosters healthy competition that can drive further innovation in the CBDC space.

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?

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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