Alongside several other central banks, it has been reported that The Bank of Israel is taking gradual steps in preparing for the launch of its very own central bank digital currency (CBDC). The currency in question for Israel is the digital shekel. Though the money regulator has stated that the central bank has accelerated its plans to launch the CBDC, the establishment itself has stressed that it has no firm steps laid out at this moment in time.
The official announcement stated that:
It is important to emphasize: Similar to many other central banks, the Bank of Israel has not yet decided whether it intends to issue a digital currency.
The regulator is only preparing a cautionary plan of action, designed to guarantee its readiness to launch a CBDC in case the relevant scenario did happen to present itself. The action plan’s ultimate focus would be to complete a full assessment of both the risks and benefits of this kind of digital fiat. Officials are aware that the impact of the CBDC would likely have an enormous effect on Israel’s already established monetary system.
