Yet Another Nation Announces Plans For A CBDC

March 11, 2024 9:04 pm Comments

Yet another country has announced plans to introduce a central bank digital currency (CBDC).

Israel has announced that it plans to introduce a digital version of the shekel that would be instant and feature the option to be used as an interest-bearing instrument.

Despite this latest announcement and Israel’s stated intentions, the country has not yet undertaken any kind of pilot program or test network for its proposed CBDC.

Additionally, Israel has been talking about issuing a CBDC for three years at the time of this writing. This lack of action has cast doubt on whether or not a CBDC will ever materialize in the country.

Here’s what is currently being reported about Israel’s CBDC plans:

Contrast this with this latest development coming out of America. Naomi Jakins reports: “Fed Chair Jerome Powell has confirmed to the Senate Banking Committee that the Federal Reserve currently has no plans to launch a central bank digital currency (CBDC), alleviating concerns over privacy and government surveillance. They used to, wonder what happened?”

Coingape explained:

The digital shekel will operate on a two-tier model. It promises instant transactions available 24/7, support for multiple payments, and offline functionality.

Moreover, the CBDC will have built-in limitations on balances. One of its most notable features is the option for it to become interest-bearing. This positions the digital shekel as a potentially attractive asset for consumers and investors alike.

Most individuals were extremely critical of any plans to develop a central bank digital currency due to the obvious privacy and freedom concerns posed by a centralized, state-controlled, digital ledger.

Coin Telegraph provided this statement from the Central Bank of Israel:

“In the area of privacy, the architecture will allow the central bank, as the system administrator, to define the types of information required for the operation, control, and monitoring of the system.

However, the central bank will not have access to personally identifiable information about end users’ balances and transactions.”

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