May 22, 2024

The Central Bank of Israel called the conditions for the launch of the digital shekel

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The Central Bank of Israel called the conditions for the launch of the digital shekel

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.

The Central Bank of Israel has not yet made a final decisiondecision to launch a digital shekel, but outlined conditions that could contribute to the decision. 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 popularity of cash toowill be a decisive factor for the launch of the digital shekel. Cash remains in significant demand in Israel, according to the central bank. However, the regulator does not rule out the possibility that in the future, as payment applications become more widespread, the use of paper and metal money will decline.

Another option for the development of events is a wideintroduction of stablecoins not tied to the shekel. Or other private means of payment that may harm the payment system. Currently, the regulator sees no signs of rapid adoption of stablecoins as a means of payment in Israel. However, the situation can change, note researchers from the Israeli Central Bank. They added that the launch of a digital shekel would make sense in the future if it allows for fast, cost-effective and secure payments using improved technological solutions.

Last year, the Central Bank of Israel reported thatCitizens of the country support the idea of ​​launching a digital shekel. At the same time, the central bank explained that to use the state digital currency, minimal information about the client will be required.