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Laxman Pai, Opalesque Asia: The Bank of Israel commissioned a research study regarding the feasibility of a digital form of its currency Shekel. As per the reports released by the bank, it has been found out that the Digital Shekel is not compatible in various fields and departments.
The report concluded that a central bank digital currency (CBDC) was not suitable for the needs of the country after considering several factors in the different spheres of the economy.
"Central banks around the world are examining the possibility of issuing digital currency and/or using distributed technologies in the payment systems, but no advanced economy has yet issued digital currency for broad use," the report said.
The report said the Bank of Israel should discontinue any plans of releasing cryptocurrency until the technology becomes suited to the different fields of work. It was speculated that the digital Shekel will hold a value equivalent to one Shekel.
The research team did find some benefits an e-shekel will bring. It explained in the statement that a digital currency will help maintain the public's access to the central bank's liability when there is little use of cash in the country.
The report said that digital form of currency can be used as a substitute for the physical form in times of crisis. Israel at the moment is very capable and functional with its current form of banking system.
The report also explained that the national cryptocurrency can h...................... To view our full article Click here
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