COTI, along with 14 other fintech firms, has been selected to participate in the Bank of Israel’s Digital Shekel Challenge, which aims to explore the feasibility of a central bank digital currency (CBDC).
This initiative, supported by PayPal Israel and Fireblocks, will start in August and require teams to present their proposals by late October.
The challenge is a key step toward potentially establishing a national digital currency. While the final decision from the Bank of Israel is pending, the project represents a significant move towards CBDC implementation.
COTI, known for its Layer 2 solutions on the Ethereum blockchain, is focusing on privacy and cybersecurity. Using garbled circuits technology, COTI aims to address privacy concerns associated with digital currencies. CEO Shahaf Bar-Geffen emphasized that strong privacy protections are crucial for the success of CBDCs.
As physical cash declines, CBDCs could enhance financial access for underserved populations. However, their implementation faces hurdles such as user verification and privacy issues. A successful CBDC may require integrating blockchain technology with existing financial systems.
The Digital Shekel Challenge will help the Bank of Israel understand how to effectively develop and integrate these components.
As artificial intelligence continues to evolve, analysts at Bernstein emphasize that integrating cryptocurrency micropayments is crucial to avoid financial limitations in the AI sector.
Mastercard has partnered with Mercuryo to launch a crypto debit card in euros that allows users to spend cryptocurrencies like Bitcoin from self-custody wallets at over 100 million merchants globally.
Since its inception in 2017, Revolut has onboarded 250,000 businesses, with 20,000 new entities joining each month.
Bybit, one of the world’s largest cryptocurrency exchanges by trading volume, is expanding its presence by launching crypto maps in Brazil and the Netherlands.