Bank of Israel Has the Public’s Support on Digital Shekel

Bank of Israel Has the Public’s Support on Digital Shekel

Over the previous year, as global economies have shown increased interest in CBDCs, Israel’s Central Bank has received encouraging feedback from residents. The financial institution’s position on issuing one, however, remains uncertain.

According to Reuters, Israel’s central bank announced on Monday that it has gained mass support for its intentions to potentially issue a digital shekel, citing the benefits of encouraging creativity in the finance system, lowering cash, and bolstering the fintech sector.

“The Bank of Israel has still not made a final decision on whether it will issue a digital shekel. But all of the responses to the public consultation indicate support for continued research regarding the various implications on the payments market, financial and monetary stability, legal and technological issues, and more.”

–Bank of Israel

Israeli authorities revealed earlier this year that they’d broadened the range of their study into a future CDBC debut as the Bank sought to ensure it didn’t fall behind other countries and their digital currency initiatives.

In November of last year, the Bank expanded its research and preparation efforts in anticipation of the probable release of a digital shekel. After pondering launching a central bank virtual currency in late 2017, it pushed up research to establish a more streamlined payment platform.

The bank’s Deputy Governor Andrew Abir stated that the bank had conducted a cryptocurrency pilot, but that the establishment of a CBDC in Israel was unlikely. He did say, however, that the bank has increased its efforts in light of recent evolution of the digital industry and payments, as well as the work of the main central banks on the subject.

Furthermore, financial institutions stated in March that a digital shekel would not materially degrade the banking system’s business performance. Finally, the Bank urged the public to assess the benefits and drawbacks of establishing a CBDC.

The bank announced on May 10 that it had gotten 33 submissions from multiple industries, half of which were from abroad, and roughly 17 from the fintech industry.

In its ongoing study on the digital shekel, the Bank is dedicated to transparency and openness, and hopes to maintain a beneficial conversation including all parties involved at all phases of the program’s research and innovation.

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Jai Hamid

CoinCu News