Bank of Israel claims ‘public support’ for its CBDC project

despite the fact that it still doesn’t final decision at launch “Digital Shekel,” the Central Bank of Israel reported that public feedback on the project was mostly positive.

According to Reuters, on Monday, the Bank of Israel Summarize result public consultation On its central bank digital currency (CBDC) plans. A total of 33 responses were received from different industries, half of which were from abroad and 17 from the domestic fintech community. While no final decision has been made specifying the fate of the project, it claims:

“All responses to the public consultation indicated support for continued research into the various implications for payments markets, financial and monetary stability, legal and technical issues, and more.”

According to reports, despite the public perception that the digital shekel will encourage competition in the payments market, the issue of privacy has once again become controversial. The bank mentioned that some commentators prefer the currency of the future to be completely anonymous, while others insist that fighting money laundering and the black market makes anonymity impractical. The Bank of Israel aims to continue research and “engage productive dialogue with all interested parties at all stages of R&D”.

related: US Congress sees e-cash as CBDC alternative

Speaking to Cointelegraph about the domestic crypto community’s attitude towards the digital shekel, Elad Mor, head of Israel-based international blockchain PR firm MarketAcross, said:

“It feels like most digital shekel CBDC proponents are painting the topic as a broad adoption narrative. In other words, any crypto adoption is still adoption, even if it doesn’t adhere to crypto’s core values ​​like decentralization and anti-decentralization. institutionalism.”

Mor pointed out that not everyone in Israel’s digital finance space has the same vision. However, he himself believes that “bringing cryptocurrencies to the masses has to start with some level of institutional and government involvement.”

this CBDC projects considered first Approved by the central bank in late 2017. A year later, the research team suggested stopping the project in the near future, but in May 2021, Bank of Israel Recovery the idea. In November 2021, it said it would accelerate research. March 2022, Bank of Israel comfirmed It did not see the threat of an “erosion” to the national banking system from the potential rollout of the digital shekel.