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The leadership of the Central Bank of Israel has listed the main reasons that may prompt the regulator to launch its own digital currency SHAKED.
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The Central Bank of Israel has not yet made a final decision onthe launch of the digital shekel, but outlined conditions that could facilitate a solution. First of all, this is the launch of state currencies by the central banks of the United States, the European Union and other developed countries. The regulator believes that this may be quite likely in the coming years.
The decline in the popularity of cash will also becomedecisive factor for the launch of the digital shekel. Cash is still in high demand in Israel, according to the central bank. However, the regulator does not exclude the possibility that in the future, as payment applications become widespread, the use of paper and metal money will decrease.
Another scenario is the wideintroduction of stablecoins not linked to the shekel. Or other private means of payment that could harm the payment system. Now the regulator does not see signs of the rapid adoption of stablecoins as a means of payment in Israel. However, the situation can change, researchers of the Israeli Central Bank note. They added that in the future, the launch of the digital shekel would make sense if it allows for fast, economical and secure payments using advanced technology solutions.
Last year, the Israeli Central Bank announced that citizenscountries support the idea of launching a digital shekel. At the same time, the central bank explained that the use of the state digital currency would require minimal information about the client.</p>