On November 7, 2018, the Central Bank of Israel published the results of a research to study the possibility of issuing a cryptocurrency, which would be equivalent to the cost of a shekel, "Digital Shekel", – according to CCN.
The so-called "digital shekel", according to the results of the research, turned out to be completely unsuitable for Israeli consumers in several regions of the country. Therefore, the report stated that the Central Bank of Israel should not introduce cryptocurrency in the near future.
Recall that in December 2017, a joint team from the Ministry of Finance of Israel and the Bank of Israel was convened under the leadership of Governor Karnit Flug to study the pros and cons of issuing digital currency of the Central Bank of Israel. The potential positive results of the Digital Shekel data at the time included the provision of faster payments and a reduction in the unregistered economy. This could lead to an increase in tax revenues.
However, in the announcement of the new report, published on November 7, it is indicated that the study clearly recommends not to release Digital Shekel in the near future.
Excerpt from the announcement of the Ministry of Finance of Israel: "(...) does not recommend that the Bank of Israel release digital currency in the near future. (...) It is necessary to continue to study the area and monitor developments around the world before there are proper grounds for deciding to recommend the release of digital currency in Israel."
The report also states that the introduction of Digital Shekel (CBDC) will increase the risks and difficulties that can have a potentially negative impact on the Israeli financial system. "Until the possible risks are fully understood," the report says, "the research team will continue to study the potential impact of the digital Shekel and monitor developments around the world to be able to recommend change.
Editor: Yuliya Soroka