The Central Bank of Israel will not rush to integrate the digital currency into the state’s payment infrastructure. Testing of the digital shekel began in June 2021.
The Deputy Governor of the Bank of Israel, Andrew Abir, promised that all transactions with the token would be safe and transparent. However, no decision has yet been made to create a digital version of the national currency.
Earlier this week, the CBDC research division of the Israeli Central Bank presented several scenarios for creating a digital shekel and integrating it into the state’s banking system. The regulator believes that there is no need for widespread introduction of CBDC.
The innovative tool has not yet been fully explored, and both technical and legal problems may arise.
According to the regulator, the current financial system is able to meet all the basic needs of the population and business. The authorities at this stage are not interested in a rapid change in the financial system and the rejection of fiat money.
The transformation process should be gradual in order to minimize all potential risks, the Israeli Central Bank stressed.