For the last year the Bank of Israel has been exploring central bank digital currencies (CBDC) and today
published its report. The main recommendation is that the bank should not issue a CDBC in the near future, but the topic should continue to be examined and monitored.
The study noted that no central bank in an advanced economy had issued a CBDC for broad use, though it acknowledged that some are considering it, notably Sweden.
There is also no standard definition or format for a CBDC. For example, it could be issued for use by financial institutions only, or for retail use only or both. There is also no standard set of features. Physical cash does not earn interest so there’s the question of whether a CBDC would be interest bearing and the degree of anonymity.
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