Israeli central bank official Andrew Abir has highlighted that digital payment methods have significantly diminished the role of cash in the country. Speaking at a conference, Abir stated that while cash was once competitive with other payment options, technological advancements have eroded its significance. He also announced the establishment of a sandbox to test a central bank digital currency (CBDC) called the digital shekel. This sandbox will allow various entities, including financial institutions and fintech companies, to develop and test use cases for the digital shekel. Abir believes that CBDCs have the potential to foster financial competition and can be used in digital and e-commerce transactions, offering capabilities that traditional cash lacks. The Bank of Israel has undertaken several initiatives related to the digital shekel but has not confirmed definitively whether it will proceed with issuing the currency.
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Israeli central bank official says digital payment methods have ‘eroded’ the role of cash
