The Bank of Israel building is seen in Jerusalem June 16, 2020. REUTERS/Ronen Zvulun/File Photo

JERUSALEM, Nov 29 (Reuters) – Israel’s central bank is stepping up studies, research and preparations for the possible issuance of a digital shekel aimed at creating a more efficient payment system, the governor said on Monday. of the Bank of Israel, Amir Yaron.

Yaron told a conference that the bank, like other central banks, had not yet decided whether it would issue digital currency and was still considering the matter. “We are committed to being at the forefront of economic and technological knowledge in this area,” he said.

The Bank of Israel began considering the possibility of issuing a central bank digital currency (CBDC) in late 2017, but a year later a team set up to study the matter recommended against issuing CBDCs in a near future.

In May, the central bank said it was considering issuing a digital shekel again.

As payment methods unrelated to the central bank’s monetary base expand, the central bank’s ability to navigate monetary policy could be impaired, Yaron said.

“Therefore, central banks have a unique role to play in preventing fragmentation and ensuring that the payment system becomes even more uniform and efficient. One way to do this is through the CBDC,” he said. declared.

Reporting by Steven Scheer Editing by Ari Rabinovitch

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