Bank of Israel considering the issue of digital shekel stablecoin
The digital currency would enable much more convenience and transaction security, but would also carry its own host of risks.
By ZACHY HENNESSEY
The Bank of Israel is preparing an action plan for the potential issuance of a digital shekel. In a recent document, the bank discussed the conditions that would enable or support a decision to issue a BOI Central Bank Digital Currency (CBDC) at some point, indicating a number of variables that may have an effect on the steering committee’s recommendation.
A CBDC is a digital currency issued and backed by a central bank, representing a digital version of a country’s fiat currency (money backed by a government). CBDCs are designed to be used as a medium of exchange and store of value, just like traditional currency, employing stablecoins, whose value is pegged to a reference asset, such as fiat currency.
Some may think this sounds like the popular cryptocurrency Bitcoin. However, unlike decentralized cryptocurrencies like Bitcoin, CBDCs are centralized and controlled by a central authority, such as a central bank or monetary authority.
more.............. https://www.jpost.com/business-and-innovation/banking-and-finance/article-739443
The digital currency would enable much more convenience and transaction security, but would also carry its own host of risks.
By ZACHY HENNESSEY
The Bank of Israel is preparing an action plan for the potential issuance of a digital shekel. In a recent document, the bank discussed the conditions that would enable or support a decision to issue a BOI Central Bank Digital Currency (CBDC) at some point, indicating a number of variables that may have an effect on the steering committee’s recommendation.
A CBDC is a digital currency issued and backed by a central bank, representing a digital version of a country’s fiat currency (money backed by a government). CBDCs are designed to be used as a medium of exchange and store of value, just like traditional currency, employing stablecoins, whose value is pegged to a reference asset, such as fiat currency.
Some may think this sounds like the popular cryptocurrency Bitcoin. However, unlike decentralized cryptocurrencies like Bitcoin, CBDCs are centralized and controlled by a central authority, such as a central bank or monetary authority.
more.............. https://www.jpost.com/business-and-innovation/banking-and-finance/article-739443
