Israel: The CBDC Will Accelerate Banking Sector Modernization
Following the emergence of a digital shekel, the Israeli banking industry is expected to experience rapid growth and advancement.
Deputy Governor of the Central Bank Andrew Abir predicts that increased competition among commercial banks will contribute to the further development of the financial market.
In order to fully integrate the digital shekel into the payment system, expanding the infrastructure is necessary.
This process will be gradual, and unlike unregulated cryptocurrencies such as Bitcoin, the digital shekel will have an official issuer – the Bank of Israel.
This ensures that token holders’ obligations will be guaranteed by a legitimate institution. While the decision to issue a digital currency has not yet been made, Andrew Abir stated that the Bank of Israel is currently exploring potential ways to incorporate the token into the financial system.
