Israel's Central Bank Considers Digital Shekel for Simplified Payments

Israel's digital shekel potential in revolutionizing payments. Gain insights into benefits, challenges, and financial implications.

Sep 12, 2023 - 10:49
Sep 12, 2023 - 10:50
Israel's Central Bank Considers Digital Shekel for Simplified Payments
Israel's Central Bank Considers Digital Shekel for Simplified Payments

Israel's central bank is thinking about introducing a digital version of their currency, called the digital shekel. While the idea has been around since 2017, they haven't decided for sure if it's happening. This article breaks down the possible advantages, challenges, and what it means for all of us.

Making Payments Easier: The Digital Shekel Plan

Last November, the Bank of Israel started looking into creating a digital shekel to make paying for things more efficient. This idea came after thinking about a digital currency backed by the central bank in late 2017.

What the Boss Says: A Realistic View

The head of the Bank of Israel, Amir Yaron, shared his thoughts at a recent meeting about digital money. He said they're not entirely sure about launching the digital shekel, and many other countries are in the same boat. But he made it clear they're committed to exploring this new way of handling money.

Sela Project: Proving It Works

Together with partners in Hong Kong and the Bank for International Settlements, Israel's central bank tried out the digital shekel in what they call the Sela project. It showed that not only can it work, but it can also be easy to use, create healthy competition, and stay super secure, just like regular cash.

Your Privacy Matters: A Promise from the Boss

Governor Yaron stressed that if Israel goes ahead with the digital shekel, they'll make sure your privacy is protected. This is really important as more of our money moves online.

More Choices, More Fairness: What the Digital Shekel Could Mean

Deputy Governor Andrew Abir talked about how a digital shekel could shake things up in the world of money. Right now, a few big banks and institutions have a lot of control. But introducing a digital currency could give new players a chance to offer different financial services and make things more competitive.

Fixing Money Discrepancies: What You Need to Know

Abir pointed out a big issue that the digital shekel could help with - how changes in interest rates affect you. Over the last year, banks haven't always passed on those changes to your accounts, which is different from how they handle loans. This has worried a lot of people.

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