Bank of Israel prepares action plan for digital shekel

As digitalisation in the global financial system develops rapidly, the Bank of Israel is beginning preparations for an eventual launch of the currency, with a plan ready to be put into action, if the right conditions arise, the report said. The central bank emphasised that in line with many other central banks, ‘the Bank of Israel has not yet decided whether it intends to issue a digital currency’. The central bank also emphasised that it will continue issuing cash in the form of banknotes and coins, ‘as long as there is a demand for such on the part of the public, and as long as the Bank believes that it is necessary’ to support the payment system in Israel.

To prepare the ground, a steering committee appointed by the central bank has set out, in general terms only, a draft model for a potential Bank of Israel digital currency. This model will now be the basis for a discussion by players in the payments, finance and technology sectors, in academia and in relevant government agencies and organisations, the central bank said in a statement.