Standing on stablecoins, the Bank of Israel stated that a central bank digital currency (CBDC) could be issued in line with this increase in usage.
On April 17, the Bank of Israel’s Steering Committee for Potential Digital Shekel Issuance outlined some scenarios for the development and maintenance of a CBDC, a digital shekel called “SHAKED”. The Bank of Israel, which created the planning of the CBDC named SHAKED, stated one of the main elements of the breakthrough in the form of “stablecoins”. The Bank of Israel stated that it will make CBDC moves more frequent as a result of the stability and increase of stablecoin usage. In addition, stating that the adoption of stablecoins could harm payment systems, the committee also emphasized that stablecoins that are not pegged to the shekel could pose a danger to money transfer transactions.
“Rising Stablecoins Could Trigger CBDC!”
Noting that the increasing adoption of stablecoins could “harm payment services,” the committee said that stablecoins that are not pegged to the peg “could harm money transfers.” Also, the committee targeting stablecoin and CBDC issues;
“At this point, there is no sign of substantial adoption of stablecoins as a means of payment in Israel. However, in the scenario of issuance by a large private sector entity, the public’s payment habits can change rapidly.”
Creating its future plans by associating stablecoins with CBDC, the Bank of Israel has attracted the attention of not only the crypto industry, but also other financial markets globally.
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