Bank of Israel Considers Issuing Digital Shekel

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The steering committee of the Bank of Israel has made it clear that the regulator has yet to decide whether to issue a central bank digital currency (CBDC). The 21-page report presenting the scenarios observed that while 90% of central banks worldwide are looking into CBDCs, only a few have gone as far as issuing them. In order to investigate the potential applications of CBDCs for international remittance and retail payments, the Bank for International Settlements (BIS) has partnered with the Israel Bank. A decision by the United States or the European Union, a reduction in the use of cash, a major adoption of stablecoins, competition in the domestic payment system, and technological advancements in payment systems are all scenarios that could impact the decision to issue a digital shekel.

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Brian Armstrong, the CEO of cryptocurrency exchange Coinbase (COIN), suggested that if the regulatory landscape for the sector is not clarified, the company may think about leaving the United States. He discussed the potential for the US to become a significant market for cryptocurrencies during Fintech Week in London, but he also pointed out that there is only one regulator: the Financial Conduct Authority (FCA), which is in charge of commodities and securities, and the Securities and Exchange Commission (SEC), which is in charge of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The SEC recently sent Coinbase a Wells Notice informing it that there would soon be regulatory action related to the listing of unregistered securities.

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