Bank of Israel claims ‘public support’ for CBDC project

Although the Central Bank of Israel has not yet made a final decision on the launch of the “digital shekel”, it has reported that public feedback on the project has been largely positive.

According to Reuters, the Bank of Israel on Monday We have summarized the results of public consultations on the Central Bank Digital Currencies (CBDC) initiative. We received 33 responses from various fields, half of which came from overseas and 17 from the domestic fintech community. Noting that a final decision on the fate of the project has not yet been made, it asserts that:

“All responses to the public consultation indicate support for ongoing research into the various impacts of payment markets, financial and monetary stability, legal and technical issues, and more.”

While the public is known to believe that digital shekels will fuel competition in the payment marketplace, it is privacy issues that have once again been the subject of controversy. The bank notes that some commenters prefer that future currencies be completely anonymized, while others argue that anonymity is impractical due to money laundering and the fight against the black market. The Bank of Israel aims to continue research and “informative dialogue with all stakeholders at all stages of research and development”.

RELATED: US Congress sees e-cash as an alternative to CBDC

Elad Mor, head of MarketAcross, an international blockchain PR firm based in Israel, told Cointelegraph about the attitude towards digital shekels in the domestic cryptocurrency community:

“It seems that most digital shekel CBDC proponents paint the subject a broader adoption narrative. In other words, all crypto adoption is still adoption, even if it doesn’t adhere to crypto’s core values ​​such as decentralization and anti-institutionalism.”

Mor said that not everyone in Israel’s digital finance sector shares the same vision. However, he himself believes that “bringing cryptocurrencies to the masses should start with some institutional and government involvement.”

The CBDC project was first reviewed by the central bank in late 2017. A year later, the team recommended that the project be halted in the near future, but in May 2021 the Israeli Bank revived the idea. In November 2021, he said he would accelerate the research. Bank of Israel March 2022 Confirm The point is that we haven’t seen any threat of “erosion” to the national banking system with the potential launch of the digital shekel.

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