Public consultation reveals positive interest in the digital shekel of Israeli banks

A survey conducted by the Central Bank of Israel has received mostly positive responses from stakeholders regarding the possibility of issuing a digital shekel currency. The regulator said many of the participants in the public consultations supported the project’s continued development.

Bank of Israel Announces Results of Discussion on Digital Shekel Project

The Israeli Monetary Authority recently Publishing A document detailing the results of a public consultation held for input from stakeholders on central bank digital currencies (CBDC) project. The regulator announced that it received 33 responses, half from abroad and the rest from the domestic fintech community.

Most respondents supported the digital shekel issuance plan, citing certain advantages, such as opportunities to encourage competition in the payment marketplace. A new infrastructure of digital currency could then spur innovation in Israel’s payment system, which critics say is currently fairly concentrated and has high barriers to entry.

Many participants believe that the development of financial inclusion, which the Digital Shekel Steering Committee sees as an added benefit, should be the main motivation for the issuance of CBDCs. Some have suggested that developing the fintech industry and reducing the cost of the cash system is also a priority.

Due to privacy concerns, respondents said that while maintaining anti-money laundering rules in an effort to combat unreported “blacks” and those who claim that digital shekels should have a cash-like feature that provides complete anonymity, they Divided into those who support trade secrets. “The economy is unhindered.

Many participants have also proposed additional use cases for digital shekel, such as transferring government payments, including through designated tokens that enable payments for specific purposes. Food supply and healthcare delivery are two areas where institutional and non-governmental organizations can use CBDCs for dedicated transfers.

The Bank of Israel announced that it was considering launching its own digital currency at the end of 2017. The project was halted the following year, but work resumed in the spring of 2021 when regulators drafted the CBDC model. The use of distributed ledger technology. The Bank of Israel has not yet made a final decision on the digital shekel, but said in March that the currency did not pose a threat to the country’s banking system.

tags in this story

Bank of Israel, CBDC, Central Bank, Competition, Consultation, Crypto, Cryptocurrencies, Cryptocurrency, Digital Currency, Digital Shekel, Israeli, Israeli, Paper, Payment, Payment Market, Privacy, Public Consultation, Respondent, Response, Survey

Do you expect Israel to eventually issue a digital version of its national fiat currency? Let us know in the comments section below.

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Lubomir Tasev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’ quotes. In addition to cryptocurrencies, blockchain, and fintech, he said, international politics and economics are two other sources of inspiration.

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