Yesterday the Israeli press reported that the Deputy Governor of the Bank of Israel, Andrew Abir, said that the central bank has already issued a central bank digital currency (CBDC) as part of an internal pilot program. He previously estimated only a 20% likelihood of a digital shekel.
“It’s risen a little over the past year, mainly because of other countries also focusing on it, but there is still less than a 50% chance,” the Globes reported. In May, the central bank published a working paper and invited discussion and feedback.
Abir noted that some had expressed a hope that a CBDC might eliminate banks. “I’m sorry to tell you, but this is not going to eliminate the banks. No central bank would bring in a digital currency with such an aim. The banks are still an important part of any payments system that there will be,” said Abir.
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