Israel moves forward with digital shekel
Israel CBDC digital shekel
Israel is advancing its plans for a central bank digital currency (CBDC) with the release of a preliminary design for the digital shekel.
The Bank of Israel’s Steering Committee unveiled key details of the proposed currency on March 3, 2025, marking a significant step in the country’s exploration of digital finance, according to Coingape.
While the launch of the digital shekel remains uncertain, the proposal outlines its core infrastructure, including a regulatory framework, ecosystem roles, and interoperability with other payment systems. The Bank of Israel emphasized that the digital shekel would be accessible to all, including individuals, businesses, and financial institutions.
Balancing innovation and financial stability
The digital shekel is designed to serve both retail and wholesale transactions. The central bank would retain control over issuance and system policies, while private-sector payment providers would handle customer onboarding and transaction services.
Notably, the currency is expected to feature offline functionality, ensuring usability even in the absence of an internet connection.
Israel’s move comes as nearly 134 countries explore CBDCs, reflecting a global shift toward digital currency adoption. While nations like the Bahamas, Jamaica, and Nigeria have already launched their own digital currencies, others, including members of the BRICS alliance and the European Union, are actively developing similar initiatives.
The Bank of Israel’s decision to advance the digital shekel contrasts with the United States’ recent focus on a national crypto reserve, which includes Bitcoin and other digital assets.
As different countries chart their paths in the evolving financial landscape, Israel’s approach underscores a preference for a state-controlled digital currency designed for broad public and institutional use.
Besides that, Israel launched mutual funds tracking Bitcoin’s price on December 31, 2024. The Israel Securities Authority approved them prior last year.
