Central Bank of Israel Considering CBDC

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Recent research by the Bank of International Settlement revealed that nine out of ten central banks are working on the CBDC project, as digital currency projects are on the top priority list in the country. 

BIS Report revealed that: “Globally, more than two-thirds of Central banks consider that they are likely to or might possibly issue a retail CBDC in either the short or medium term.

Central banks consider CBDCs capable of alleviating key pain points such as the limited operating hours of current payment systems and the length of current transaction chains.” 

Israeli Central Bank on CBDC project 

Israel’s Central bank is planning for the creation of a digital shekel which has been under process for a long time, but the bank has taken it as a serious action from 2021.

The Israeli public has a great belief in the digital shekels project thinking that it would help the economy by reducing cash usage and improving financial stability. 

In action to this, the Central Bank has received 33 public responses to its request, out of which 17 were from fintech companies.

According to the regulator: “All of the responses to the public consultation indicate support for continued research regarding the various implications on the payments market, financial and monetary stability, legal and technological issues, and more.”

Considering the respondent’s opinions, differences of opinions are noted by the Central Bank amongst the responses made. where some want complete anonymity, and others say it should be in consideration with the rules of anti-money laundering. 

Hence the central bank has not made any decisions yet to launch the project, instead, it is in dialogue with stakeholders about the CBDC. But, Some of the Crypto countries like China, Russia, and Nigeria have already taken the step ahead in using the CBDC projects in their respective countries. 

The Nigerian Central Bank is improving its eNaira digital currency to support the bill payments in the country, whereas China has continued with its trial of it’s Digital Yuan in several major cities of the Asian countries, and Russia is been forced to step up its Digital Ruble project in the middle of economic sanction in the country.