Bank of Israel Governor Amir Yaron said that digital central bank money (CBDC) is the future of finance and will provide central banks with an effective monetary policy as payment systems change.
The Chairman of the Israel Center announced that Israel plans to become a pioneer in this exciting new field. Yaron, the central bank aims for a more efficient payment system, a possible digital shekel (Israeli currency) exports He said he’s speeding up his work.
Speaking at a recent conference, Yaron told attendees:
We are committed to being at the forefront of economic and technological knowledge in this field.
said.
The bank has not yet CBDC has not decided to publish however, it continues its research to ensure that all systems will be in place if it decides to issue digital shekels.
According to Yaron, when CBDCs threaten the ability of digital payment systems to drive monetary policy, could be an option for central banks. Yaron:
So central banks have a role to play in preventing fragmentation and ensuring that the payment system is uniform and efficient, One way to achieve this is through CBDC.
This is not the first time Israel has put CBDCs on its agenda. In 2017, the Federal Reserve raised the possibility of digital shekels, but the next year, the team it set up to study CBDCs advised against it.