Bank of Israel Doesn’t Recommend Launching Bank-Backed e-Shekel

Bank of Israel Doesn’t Recommend Launching Bank-Backed e-Shekel 1

The central bank of Israel has published a summary of the work of its interdepartmental team to examine central bank digital currency and its eventual use in the country’s financial system. The research found there are no proper grounds for a decision to recommend issuing digital currency as of yet.Israel’s Central Bank Report Weighs Benefits and Risks of Issuing Own Digital Currency, e-ShekelA team established by Karnit Flug, Governor of the Bank of Israel, examined the issue of central bank digital currencies (CBDC), only to conclude the work group doesn’t recommend the issuance of its own CBDC in the near future.The document argues that it is necessary to continue examining the field and to follow developments around the world before any change of stance.No advanced economy has yet issued a digital currency for broad use, although a few central banks in those countries are in advanced stages of examining the feasibility of issuing their own digital currency. The Swedish government has recently published a report calling for the expected launch date of the e-krona to be brought forward. Issuing a CDBC in Sweden could prevent citizens from searching for “means of payment” services provided by “private agents,” the document argued.The Bank of Israel, however, does not feel threatened by the current disruption caused by the cashless society and the cryptocurrency market as the “issue is not relevant to Israel at this time.”“The document presents the main objectives that issuing CBDC may have. One of those objectives is maintaining the public’s access to the central bank’s liability, in the event that the use of cash declines significantly as is happening in Sweden. However, this issue is not relevant to Israel at this time. Another motivation for issuing an e-shekel may be to support the payments system (including improved redundancy) and make payments more efficient. Under certain specifications, and particularly if it bears interest, the e-shekel can be an additional monetary tool, but that is not a main objective of issuing it.”The central bank added there is no uniform specification for central bank digital currencies, from its accessibility, the method of issuance, the extent of anonymity in its use, and whether it will bear interest. The team studied the advantages, disadvantages, and risks inherent in each option. The team found a number of material and technological difficulties and risks in the issuance of CBDC, mostly regarding the impact on the central bank and financial system.The team, which will continue to study the issue and follow developments around the world, listed a number of benefits of issuing an e-shekel, including the fight against the unreported economy and its use to advance the technological environment and the fintech sector.Featured image from Shutterstock.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021

Blockchain/Cryptocurrency Questions and Answers

Crypto casinos
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin55,290 1.19 % 1.66 % 6.13 %
Ethereum4,377.5 2.40 % 2.35 % 3.06 %
Binance Coin598.62 1.52 % 3.11 % 6.20 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana220.38 1.55 % 3.10 % 5.05 %
Cardano1.590 1.35 % 6.43 % 5.18 %
XRP0.9439 1.87 % 2.61 % 9.46 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2215 0.68 % 1.42 % 7.23 %

bitcoin
Bitcoin (BTC) $ 55,495.00
ethereum
Ethereum (ETH) $ 4,397.22
binance-coin
Binance Coin (BNB) $ 601.72
tether
Tether (USDT) $ 0.994208
solana
Solana (SOL) $ 221.64
cardano
Cardano (ADA) $ 1.59
xrp
XRP (XRP) $ 0.944791
usd-coin
USD Coin (USDC) $ 0.995514
polkadot
Polkadot (DOT) $ 34.61
dogecoin
Dogecoin (DOGE) $ 0.202447