Bank of Israel Proposes Design for Multipurpose Digital Shekel

The Bank of Israel has proposed a design for a potential central bank digital currency (CBDC), referred to as the digital shekel (DS). Key points include:

• The DS is intended for both retail and wholesale use.
• It aims to meet the needs of households, businesses, and financial institutions.
• The CBDC would serve as a digital equivalent to cash and enhance the existing settlement system.
• The design includes features like composability and programmability.
• No decision has been made on issuing the CBDC; the presented design is preliminary.

Nearly all developed economies are exploring CBDCs, viewed by supporters as tools for financial inclusion and modernization, while critics warn of increased state control over money usage.