The Bank of Israel recently published a Preliminary To enter a Digital ShekelAlso known as CBCD (The digital currency of the Central Bank).
This project defines a complex framework that includes the ecosystem for support, technical design and organizational considerations. Let’s look together to the details of this initiative, which can revolutionize the Israeli financial system.
CBCD: The new project for Israel
On March 3, steering committee From the Bank of Israel She issued a document In detail, it explores CBDC’s internal capabilities.
This document not only describes the motives behind the introduction of a digital shekel, but also shows its technical characteristics and the following steps in the development process.
The Central Bank Committee has identified six major reasons for the issuance of a digital shekel.
Among them, creating an alternative payment system, reducing costs, improving privacy, and supporting underground economy. These goals emphasize the importance of a more transparent and effective financial system.
According to the report, CBDCS can provide many benefits to the public. Shekels should be on the reach of everyone, including children, foreigners, companies, public institutions and financial entities.
This totalitarianism aims to ensure that all population sectors can benefit from digital innovation.
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Technical characteristics and inter -employment capacity
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The Bank of Israel will be the only source of CBDC, while participants in the private sector will play a fundamental role in the user’s use and provide advanced financial services. The main features of the shekel will include:
- – Unlawful jobsTransactions will allow even in the absence of an internet connection.
- – Interoplyità: It will be compatible with other payment systems, allowing transactions even with the counterparts that do not use digital shekels.
- – Instant settlements: It will allow the settlement of fast and safe transactions.
As part of the examination process, the Bank of Israel launched a digital shekel. This initiative calls on technicians and companies to suggest the real use of digital shekels, stimulate innovation and adopt new technologies.
The potential impact on the financial market
The final decision will be taken on the introduction of the Israeli CBDC after 2026. Until then, the Bank of Israel will bring together general reactions and suggestions on CBDC design.
Moreover, requests for information will be sent to technology providers to explore additional implementation ideas.
The creation of a digital shekel can convert the Israeli financial scene. With a more efficient and safe payment system, operational costs can be reduced and financial transparency improvement.
However, CBDC’s dependence also involves challenges, such as privacy protection and risk management related to cybersecurity.
In short, the Banque Israel project for a digital shekel represents an important step towards creating the national financial system. It remains to see how this initiative will develop and what its impact on the Israeli and global economy.
By collecting comments and cooperation between the public and private sectors, Israel is preparing to explore the new borders in the world of digital currencies.
