The Bank of Israel issued a preliminary design proposal for Shekel Digital (DS), the possible central bank currency in Israel (CBDC), although there is no strong intention for the official launch.
On March 3, the Guidance Committee of the Bank of Israel Release Initial design for the interior CBDC-its ecosystem defines the supporter, functions, technical design, organizational considerations and the following steps.
The Central Bank Committee had previously identified six potential motives for the issuance of a digital shekel, which includes creating an alternative payment system and infrastructure, reducing costs, improving privacy and supporting government fighting against “black economy”, among other things.
Digital Shekels and other types of money in the economy. Source: Bank of Israel
In the last report, it highlighted that CBDCS can also benefit the common people:
DS is expected to offer a wide range of benefits to all sectors of the population. It will be available to the entire audience, including children, foreigners and all types of companies, public institutions and financial entities. “
It involves the participation of private companies
According to the current plan, the Bank of Israel will be the only source of CBDC, and will help the private sector participants in using the user, transfer deposits and provide advanced financial services.
The main features of the digital nickel will also include the internet -connected functions, inter -operation with other payment systems, digital asset networks, and instant settlements. The report added:
“DS will be operating with other payment systems, allowing users to receive or pay in the digital Shekel even if the other party is not used to pay the digital shekel.”
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Collect reactions to CBDC design
As part of the process of examining and evaluating the necessary jobs for a digital shekel, the Bank of Israel issued a “digital challenge for the shekel”. The technology and companies challenge to display many cases of use in the real world of the CBDC interior agreement.
The final decision will be taken – regarding the launch of the Israeli CBDC – after 2026, based on research, public comments, and organizational considerations.
Israel collects public comments and suggestions on CBDC design until April 30, 2025. The central bank will also send requests for information (RFIS) to technology providers for CBDC implementation ideas.
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