Bank of Israel deputy governor, Andrew Abir, has sparked controversy with his endorsement of central bank digital currency (CBDC). In a speech posted on the central bank’s website, Abir diverged from the conventional view that CBDC would threaten commercial banks, instead arguing that it could bring about positive change. He highlighted the benefits of competition in the Israeli banking sector but acknowledged that further progress was needed. Abir expressed confidence that the planned digital shekel would garner public support, while also benefiting the Bank of Israel by increasing liquidity and control over interest rates. Despite the mixed reactions, Abir emphasized that the digital shekel would be developed by the Bank of Israel itself, assuring transparency and accountability.
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Bank of Israel deputy governor advocates for digital currency
