Israel’s Central Bank Considers Issuing a Digital Shekel

The central bank is to focus more effort on CBDCs as a potential benefit to payments and the digital economy.

AccessTimeIconMay 11, 2021 at 3:15 p.m. UTC
Updated Sep 14, 2021 at 12:53 p.m. UTC

The Bank of Israel is accelerating its research into central bank digital currencies (CBDCs) and making preparations in case it decides to issue a digital shekel.

  • The bank is readying an action plan so it will be prepared should the benefits of issuing a national digital currency outweigh the costs and potential risks, the central bank said Tuesday.
  • It believes a CBDC would allow a payment system that could adapt to a digital economy, as well as create an efficient and inexpensive infrastructure for cross-border payments.
  • The central bank further called for comments on its draft model, which it said does not represent any decision regarding the currency's characteristics, but is merely the basis for a discussion.
  • The Bank of Israel has been discussing a CBDC since 2017.
  • Elsewhere, Sweden's Riksbank and the European Central Bank are actively researching and developing their own digital currencies in preparation for expected launches in the next four to five years.
  • The U.S. Federal Reserve is taking a more cautious approach and carrying out experiments with no firm commitment to date.
  • Then there's China, which is reportedly close to the launch of its digital yuan and is already testing the CBDC with commercial institutions and the public. 

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Crypto Lender Celsius Network Exploring Options to ‘Preserve and Protect’ Assets

Celsius Network is consulting with experts to try to reduce the fallout from its mid-June swoon.

CoinDesk - Unknown
3
CoinDesk - Unknown
Vitalik's Mom Offers Advice on How to Make It in Crypto

“You need to have a lot of perseverance and a lot of patience,” she said in an interview for CoinDesk's "Future of Work Week."

CoinDesk - Unknown
4
CoinDesk - Unknown
Do Rate Hikes Matter? Bitcoin Traders Learn How Fed Moves Markets in Twitter Era

The Federal Reserve has become a big believer in forward guidance over the years, starting with Ben Bernanke. But the central bank under Jerome Powell has taken transparency to a new level.

CoinDesk - Unknown