The Bank of Israel has published a preliminary project proposal for the Digital Shekeel (DS), the potential Central Bank Digital Currency (CBDC) Israeli, despite the fact that there are no concrete intent yet for the government launch.
On March 3, the Bank of Israel’s steering committee published a preliminary project for the inner CBDC, which explains its auxiliary ecosystem, functionality, technical design, regulatory concerns and next steps.
Earlier, the Central Bank Committee had identified six possible reasons for the digital shekel case, including the formation of a system and alternative payment infrastructure, reduction of costs, improvement of privacy and support for the government’s struggle against the government. “Black economy”.
Digital shekels and other types of money in the economy. Source: Bank of Israel
In the last report, it highlighted that CBDC can bring benefits to ordinary people:
“DS should be given a wide range of benefits to all sections of the population. It will be available to the entire public, including children, foreigners, all kinds of companies, government institutions and financial institutions.
The participation of private companies
According to the current plan, the Bank of Israel will be the only CBDC issuing, while private sector participants will contribute to consumers’ consumers, reserves changing and providing modern financial services.
The main features of digital shekel will include offline features, mutual cooperation with other payment systems and digital asset networks and instant rules. The report added that:
“DS will be able to cooperate with other payment systems, which will allow consumers to receive or pay in digital shekels, even if the payment counterpart does not use digital shekels.”
A collection of feedback on CBDC design
As part of the process of examination and diagnosis necessary for digital shekel, the Bank of Israel has launched a launch “Digital SHAKEL CHALLENGE”. Challenges encourage technologists and companies to offer various real use issues for home CBDCs.
Final decision – Even if Israeli CBDC is launched – based on research, public opinion and regular reservations, it will be taken after 2026.
By April 30, 2025, Israel will submit feedback and public suggestions on the CBDC design. The Central Bank will also send applications to technology providers for information about the implementation of CBDC.
