• Israel won’t decide on introducing a central bank digital currency (CBDC) before the European Union, a senior official of its central bank told Reuters.
  • Neither Israel nor the EU has yet committed to issuing a CBDC.

As a crypto investor with experience in following the global developments in digital currencies, I find the recent statement from Deputy Governor Andrew Abir of the Bank of Israel intriguing. The fact that Israel won’t decide on introducing a CBDC before the European Union is not surprising, given the EU’s apparent lead in this area.

Deputy Governor Andrew Abir of the Bank of Israel stated that his bank will hold off on making a decision about launching a central bank digital currency (CBDC) until after the European Central Bank has made its move.

As a researcher studying monetary policy, I firmly believe that the Western central bank poised to take the initial step in implementing a certain action is undoubtedly the European Central Bank (ECB). Once the ECB makes its move, we can expect a domino effect with other countries following suit.

Approximately three weeks ago, the Bank of Israel unveiled the Digital Shekel Challenge as part of its strategy for exploring the potential of a Central Bank Digital Currency (CBDC). Despite this initiative, they have not made a final decision regarding the issuance of a digital shekel, and continue to conduct thorough research on the subject.

As a crypto investor, I’m keeping a close eye on the developments surrounding Central Bank Digital Currencies (CBDCs). By May, over 130 countries or jurisdictions representing approximately 98% of the global economy have expressed interest in creating their own CBDCs. Notably, the European Union (EU) has shown notable enthusiasm for this innovation. In fact, last year they put forth legislation related to a digital currency, although it’s important to note that this doesn’t automatically mean they will issue one.

Abir expressed doubts about the readiness of the public to embrace a digital shekel, with the bank currently carrying out research on this issue. He emphasized the importance of having a solid collection of applications or use cases. In a market where two major banks control over 60% of the share, the primary motivation is to establish a “fair competition landscape for payment service providers” enabling them to challenge the banks’ dominance.

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2024-07-10 15:17