The Bank of Israel has speeded up the research of a digital shekel as the central bank sees no significant erosion for the banking system, Reuters has learned.
Bank of Israel Governor Amir Yaron believes that the digital currency will help with creating a more efficient payments system.
In a recent research report, the central bank found that the so-called “digital shekel” should not impact the banking system if the public adopt it as an “alternative to cash.” The central bank added though that potential transition of some of the public’s deposits to the digital shekel “may have a material impact” on both the structure and quality of the banking system’s sources.
IMF Warns Nigeria’s CBDC Might Post Money Laundering Risks Despite the potential positive outcome, the Bank of Israel stressed that it had not yet decided if it plans to issue a digital currency or not. Previously, iHodl reported that the Bank of England does not plan to develop a wallet for retail scenarios for the use of the national digital currency, said Katie Fortune, senior manager of the regulator’s CBDC division. She added that it is “highly unlikely” that the central bank would issue a retail wallet.
