CBDC: Israel Explores Digital Shekel Concept, Final Decision Expected After 2026
Israel’s central bank has unveiled an initial concept for a digital shekel (DS), laying out a potential framework for the country’s own central bank digital currency (CBDC).
While no formal decision has been made to proceed with its launch, officials are exploring its feasibility.
The Bank of Israel’s Steering Committee published a report on March 3, detailing how a digital shekel could function, its technical infrastructure, regulatory aspects, and next steps in its evaluation. The proposal highlights the benefits such a currency could provide, from modernizing payments to curbing illicit financial activities.
According to the proposal, a digital shekel would be widely available to all individuals, including children, foreign visitors, businesses, and financial institutions. Unlike traditional banking services, it would not be restricted to account holders, ensuring broader accessibility.
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While the central bank would retain control over issuance, private companies would play a role in onboarding users, handling conversions, and offering financial services tied to the digital currency. The DS is also envisioned to support offline transactions and integrate seamlessly with existing payment networks, allowing for instant transfers regardless of whether both parties use the digital shekel.
To refine the project, the Bank of Israel has launched the “Digital Shekel Challenge,” inviting companies and developers to propose real-world applications for the currency. Additionally, public consultations will be open until April 30, 2025, to gather opinions on its design.
A final decision on whether to proceed with an official rollout is expected after 2026, following further research and regulatory discussions.
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.
