Israel’s central bank is monitoring scenarios – including the widespread adoption of stablecoins – that it says could influence a decision to issue a digital shekel (SHAKED).
The Bank of Israel’s steering committee on the potential issuance of a digital shekel made clear in a Monday report that the regulator has not made a decision on issuing a central bank digital currency (CBDC).
The 21-page paper outlining the scenarios noted that although 90% of the world’s central banks are examining CBDCs, only a small number have advanced to the point of issuance.
Earlier, the central banks of Israel, Norway, and Sweden teamed up with the Bank for International Settlements (BIS) to complete an exploration of how CBDCs can be used for international retail and remittance payments.
Scenarios that could influence a decision to issue a digital shekel include a decision by the U.S. or the European Union to issue CBDCs. A decline in cash usage, significant use of stablecoins, competition in the domestic payment system, and significant technological developments in payments systems could also sway the central bank’s decision to issue one.
“The Bank of Israel must be prepared to advance the issuance of a digital shekel, if the variables listed above support it,” the announcement said.
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