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- The Bank of Israel is taking gradual steps towards launching its own central bank digital currency (CDBC), the digital shekel
- However, the central bank has yet to make any concrete decision; the draft model so-prepared is just an overview of potential plans
- The Deputy Governor of the Bank of Israel will oversee the project, including the action plan preparations
With almost every other country getting ready to adopt the future of money, the Bank of Israel is one of the latest additions to the overflowing list of central banks taking gradual steps towards the launch of a central bank digital currency (CDBC). Announced Tuesday, the monetary regulator admitted to having accelerated its preparations for the potential issuance of a digital shekel; however, it also emphasized that nothing has been decided yet.
Israel Is Still Only ‘Considering‘
The press release revealed that the central bank is still “considering” the possibility. The documents so-prepared outline “a draft model of a Bank of Israel digital currency,” which in no way represents any confirmation or decision of issuance. The finance giant is still in the process of preparing an action plan, which will finally guarantee a CBDC launch approval in case the opportunity arises in the near future.
Devoting The Time To Prepare Better
Acknowledging the risks involved, the plan of action will focus on a full assessment of both pros and cons of issuing the digital shekel. Once the preferable conditions, tipping CBDC’s benefits to outweigh its costs and potential risks, are met, the Bank of Israel will finally put this plan into action.
The bank is well aware of the enormous effect its digital fiat will have on the nation’s already established monetary system. While officials agree that “a digital shekel could generate various benefits for the Israeli economy,” issuing it also “involves risks.”
It’s A Gradual Process
The Bank of Israel first began testing the CBDC-issuance waters in 2017. And although it has yet to come to a concrete decision, the tentative steps made to date are some significant developments. The Deputy Governor of the Bank of Israel will administer the task at hand, including the action plan preparations. The central bank also plans to use the draft model as the basis for discussions and examinations, seeking comments and ideas for further development.
China: Leading The Financial Evolution
Although several large economies are working towards their CBDC launch, pioneering them all is China. With fully developed plans to release its digital yuan, the People’s Bank of China has reportedly run digital currency pilots for almost a year. What the Chinese population now awaits is the announcement of a confirmed launch date.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
