The Bank of Israel is planning to issue a central bank digital currency (CBDC) called the "SHAKED" digital shekel, according to a press release from the central bank's steering committee on the potential issuance of a digital shekel. While the decision has not been finalized, the bank cited factors including declining cash transactions, stablecoin adoption, and competition in the domestic payment system as reasons supporting the issuance of a CBDC. The Bank of Israel has been exploring the potential of retail CBDCs in the "Icebreaker" project led by the Bank for International Settlements (BIS) Innovation Hub. The G20 nations are also working on improving cross-border payments with CBDCs and discussing a common framework for regulating crypto.

(By Varinder Singh)