According to the central bank governor, Israel’s CBDC activities are being stepped up

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Background with flag of Israel

Governor Amir Yaron indicated that Israel’s central bank is speeding up its central bank digital currency (CBDC) activities. CBDCs, he remarked at a recent conference, are the future of finance and will provide central banks with a useful monetary policy instrument when the payments paradigm transforms.

Israel is a technological powerhouse that has pioneered some of today’s most cutting-edge technology. However, when it comes to CBDCs, the Middle Eastern country has fallen behind countries like China, pursuing their digital currencies aggressively.

The governor of the Bank of Israel (BOI) has stated that Israel wants to return to the forefront of this fascinating new industry. As part of its efforts to develop a more efficient payments system, Yaron said the central bank is speeding up its research and preparation for issuing a digital shekel.

For the time being, the bank has not decided whether or not to issue a CBDC. It is, however, researching to ensure that all systems are in place if it ever decides to issue a digital shekel.

Several other central banks are researching CBDCs and undertaking feasibility studies but have not committed to producing digital currencies. France is one of them, focusing mostly on a wholesale CBDC while also engaging in research on a regional digital euro. The Bank of Japan has also been looking into the possibility of releasing a digital yen, which it claims will focus on simplicity and interoperability, without committing to doing so.

For the time being, the bank has not decided whether or not to issue a CBDC. It is, however, researching to ensure that all systems are in place if it ever decides to issue a digital shekel.

“We are committed to being at the forefront of economic and technological knowledge in this field,”

he told the attendees.

Several other central banks are researching CBDCs and undertaking feasibility studies but have not committed to producing digital currencies. France is one of them, focusing mostly on a wholesale CBDC while also engaging in research on a regional digital euro. The Bank of Japan has also been looking into the possibility of releasing a digital yen, which it claims will focus on simplicity and interoperability, without committing to doing so.

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