Bank of Israel Explores Digital Shekel Amid Shifting Payment Landscape
Andrew Abir, the deputy governor of the Bank of Israel, recently addressed the diminishing role of traditional cash in the evolving landscape of digital finance due to technological advancements.
Speaking at a conference on April 16, Abir introduced plans for a sandbox initiative aimed at testing a potential CBDC known as the digital shekel.
The proposed API-based sandbox will offer a platform for financial institutions, fintech firms, and other stakeholders to explore and develop applications for the digital shekel, fostering innovation and competition in the financial sector.
Abir emphasized that CBDCs like the digital shekel could serve as catalysts for enhancing financial competition, providing a viable alternative to traditional cash in digital transactions. By enabling seamless digital and e-commerce payments, CBDCs offer functionalities that traditional cash cannot match.
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Furthermore, the digital shekel is expected to stimulate competition among service providers operating on the CBDC platform, offering diverse payment services to users.
While the Bank of Israel has shown interest in exploring CBDC possibilities, including discussions on the architectural framework based on previous experiments like “Project Sela” and “Project Icebreaker,” it has not confirmed definitive plans to issue a digital shekel as of April 2024. The bank continues to evaluate potential costs and risks associated with such initiatives before proceeding with implementation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
