Tuesday, May 30, 2023
HomeCryptocurrency NewsThe Israeli central bank wanted to create a digital shekel (CBDC)

The Israeli central bank wanted to create a digital shekel (CBDC)


The Bank of Israel is preparing an action plan for the potential issuance of a digital shekel (SHAKED), despite the fact that a decision has not yet been made as to whether the Bank intends on doing so.

The questions of the circumstances under which it would be decided to issue a retail CBDC is a complementary important discussion to the significant work being done on the business and technological specifications.

Several scenarios could lead to the creation of a digital shekel:

  • Decline in the legitimate use of cash and its acceptance in transactions in Israel – According to our data, cash is still used in Israel in a significant portion of the consumer transactions. However, it is highly probable that the use of cash as a means of payment will decline in the future, with the expanding adoption of payment applications and of electronic means of payment in general.
  • Significant penetration of stablecoins or other private means of payment that would be broadly used.
  • Technological developments in the payments system – It may turn out in the future that there would be significant justification for issuing a digital shekel, since it would be able to serve as an efficient and secure platform for advanced technological use cases.

source: https://www.boi.org.il/en/communication-and-publications/press-releases/potential-scenarios-for-deciding-to-issue-a-digital-shekel/

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