What Bank of Israel has to make a decision?
The Bank of International Settlements (BIS) research shows that 9 out of 10 central banks presently work on a CBDC project.
Reuters reported that the bank of Israel has yet to decide whether to create a digital version of its fiat currency shekel, despite the public supporting the notion.
Bank of Israel considering CBDC
Discussions over creating digital shekels have been going on since 2017. However, the central bank only began to take it seriously in 2021 when it started researching its potential.
The public believes that a digital shekel project will help the economy by reducing cash usage and improving financial technology.
The Central Bank received 33 responses to its request for public opinions on the plan. The response is that 17 of the responses were from fintech companies.
The Central Bank also noted that there is divergence on the issue of privacy amongst respondents. They want complete anonymity. In contrast, others say it should be subject to anti-money laundering rules.
No decision has been made on the implementation or launch of the project. But the bank has stated that it would continue to dialogue with stakeholders about the CBDC.
The Bank of Israel also noted that there is divergence on the issue of privacy. The issue is amongst respondents, with some wanting complete anonymity. In contrast, others say it should be subject to anti-money laundering rules.
No decision has been made on the implementation or launch of the project. But the stated that it would continue to dialogue with stakeholders about the CBDC.
Countries like China, Russia, and Nigeria have stepped up the use of their CBDC projects. A local media report stated that the central bank of Nigeria is improving its eNaira digital currency to support bill payments.
On the other hand, China has continued to trial its Digital Yuan in several major cities in the Asian country. Russia has also been forced to step up its Digital Ruble project amid severe economic sanctions.
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