The Bank of Israel announced Tuesday that it was once again considering launching a "digital shekel."
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The bank began to consider the possibility of issuing a central bank digital currency in late 2017, but a year later, a team established to study the matter recommended against it.
In its latest press release, the bank explained that due to rapid developments in the digital economy and with other central banks considering digital currencies, it was "accelerating its research and preparation" for a potential issuance of a digital shekel.
The bank said that its main motivations for issuing such a currency were creating another efficient and secure alternative to the existing and new means of payment in the digital age; creating an innovative technology that will ensure the adaptation of the payment system to the needs of the future digital economy; and maintaining the public's ability to use digital means of payment while ensuring a certain level of privacy.
The bank is asking for public comments on the matter through July and has established a panel led by its deputy governor to study its feasibility and how a digital shekel would benefit the economy.
As of now, the most common cryptocurrency is bitcoin, which currently trades at $56,000 per coin, almost 20 times higher than its lowest value during the coronavirus pandemic. The total market value of all cryptocurrencies now stands at $2.48 trillion.
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