Posted on 05/10/22
| News Source: i24
'All of the responses to the public consultation indicate support for continued research'
Israel's central bank said on Monday it had received public support for its plans to possibly issue a digital shekel on grounds it would help the economy by supporting innovation in the payments system, reducing the amount of cash and bolstering the fintech sector.
The Bank of Israel last November stepped up its research and preparation for the possible issuance of a digital shekel to create a more efficient payments system after first considering issuing a central bank digital currency in late 2017.
In March, it said a digital shekel was unlikely to significantly erode the banking system's business results.
It has called on the public to weigh in, and on Monday it said it had received 33 responses from various sectors, half of them from abroad. Some 17 replies came from the fintech sector.
"The Bank of Israel has still not made a final decision on whether it will issue a digital shekel," the central bank said.
"But 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," it said in a report.
Interest in researching digital currencies is growing worldwide.