Central Bank Of Israel Is Still Unable To Decide Whether To Develop a CBDC Or Not

Research organized on the behalf of the BIS (Bank of International Settlements) brings to the front that 9 of the cumulative 10 central banks are at present operating on a project of CBDC. The BIS has not yet determined whether to manufacture its fiat currency shekel’s digital version, notwithstanding substantial support provided by the public, as reported by Reuters.

Bank of Israel contemplates launching a CBDC

Since 2017, Israel has been witnessing several debates over the establishment of digital shekels, however, the central bank of the country has just commenced giving this matter some attention since the previous year when it researched the pros and cons of this. The public is of the view that a project for digital shekel will assist in further development of the country’s economy by minimizing the utilization of cash as well as improvement in financial technology.

Up to 33 reactions were received by the central bank to the invitation thereof for public opinions concerning the strategy, and 17 of the respective responses were provided by fintech firms. the regulator stated that the entirety of the replies mention support for the ongoing research related to diverse effects on the payment market, monetary and financial stability, technological and legal problems, and so on.

While moving on, the central bank specified that some disagreement has been witnessed among the respondents regarding the matter of privacy, as a few of them intend to have outright anonymity. On the other hand, the rest of them propose that anti-money laundering-related rules should be imposed in this respect. No final choice has been made by the central bank regarding the launch or implementation of the respective program, as it was claimed by the bank to carry on conversing with stakeholders regarding the CBDC.

Central banks accepting CBDC programs

Currently, considerable attention is given to CBDC programs as the latest research carried out by the BIS (Bank of International Settlements) indicates that 9 of 10 central banks are simultaneously directed toward a CBDC program. The report disclosed that more than two-thirds majority of the central banks are likely to release retail CBDCs. The things to be eliminated by the respective CBDCs take into account the limited hours of operation in the conventional systems of payments as well as the decreased length of the present transaction chains.

Leave a Reply

Your email address will not be published.