The initiative launched by the Bank of Israel aimed to find a potential use case for the adoption of the digital shekel.

Summary

Israel and the successful use case of Kima for the adoption of the CBDC

Israel and the use cases for adopting the CBDC 

Pilot project

Israel and the successful use case of Kima for the adoption of the CBDC

According to what is reported, the peer-to-peer protocol of Kima has successfully implemented a use case for the adoption of the Central Bank Digital Currency (CBDC). This initiative was launched directly by the Bank of Israel.

In practice, it seems that Kima has successfully facilitated the transfer of a tokenized stock via digital shekels. 

Specifically, the purchase of a tokenized stock using the digital shekel was then converted into fiat shekel to finalize the process, using Kima's settlement layer.

Kima is a peer-to-peer money transfer and payment protocol independent of assets. To demonstrate the utility of its protocol, Kima built an imaginary trading platform called PeerTrade that facilitated an atomic swap of tokenized shares.

By doing so, Kima orchestrated the transaction in place of an intermediary, connecting the buyer who used their CBDC to purchase the share from the seller who held the tokenized share in their wallet. The seller then received the payment in their bank account in the form of shekel in fiat currency.

During the entire process, Kima's technology ensured that the transaction was secure and verified. The process took place instantly, while Kima's blockchain functioned as a decentralized deposit without intermediaries or smart contracts, additional fees, delays, or unforeseen events.