Bank of Israel releases a draft model for potential CBDC
The Bank of Israel (BoL) explained that it has been exploring the concept since 2017. However, while it has a head start on others in this regard (see: the Bank of England), the bank has yet to decide whether issuance of a CBDC would be advantageous.
As is the general philosophy with CBDCs, the proposed ‘digital shekel’ would co-exist with other extant forms of currency currently used in Israel. The value proposition, as mapped out by the BoL’s Steering Committee, is as follows:
- An efficient and secure method of alternative payment in the digital economy
- The adoption of next-gen technology to bolster the country’s financial future
- Bolstering payment infrastructure during “emergencies or breakdowns”
- Laying an inexpensive foundation for cross-border payments
- Enabling the use of secure digital payment platforms
- Reduce the overall use of cash to combat the “shadow economy”
Are CBDCs worth it?
While the general hesitance of most global central banks to adopt an official digital currency indicates that it is a concept still considered a ‘novelty’, the BoL’s analysis of CBDCs puts forward a strong case for their exploration.
Notably, their use in reducing crime, promoting financial inclusion, and expanding elements of the digital economy could help resolve ongoing economic issues.
However, the BoL is also conscious that “some if not all of these benefits may be obtainable through the improvement and upgrading of the existing payment systems.” And yet, if the purpose of central banks is to facilitate the ease of transactions between people, is it sensible to eschew the development of a trend gaining momentum globally?
Whatever the case, placing a CBDC is far from an easy task. Sweden’s Riksbank recently published a report of its progress with the ‘e-krona’. Originally anticipated to be trialled in 2018, the bank’s next estimate for roll-out is the latter part of 2026.
“Simply introducing a complement to cash for retail transactions may not make much of a difference in the economy. Using wholesale CBDCs in cross-border transactions has the potential to raise efficiency,” said Johanna Jeansson, Economist at Bloomberg.
“Employing new digital tools for policy purposes could really alter the macroeconomic playing field. The bigger the step, the more thought it’s likely to require. Expect that to take time.”
The Ultimate FinTech & InsurTech LIVE Event
From October 12th-14th, 2021, BizClik’s FinTech & InsurTech live event will bring together influential executives from around the world. Live from London, this three-day event will be an excellent way to finish the year strong, gaining the confidence your company needs to move forward into the future.
With keynote addresses from global leaders, dynamic roundtable discussions, and extensive networking opportunities, FinTech & InsurTech live will expand your network, deliver insight, and enhance your organisation’s reach. Events include a forum on financial services, discussions centred on racial equality and women in fintech, and APAC, EMEA, and US-focused sessions that capture insights from around the world.
The event will include:
- Keynote addresses from respected industry leaders
- Dynamic live roundtables (inc. Q&A)
- Fireside discussions
- Inspirational Speakers & Presentations
- Extensive networking opportunities
Scope Out the Agenda
This week, we’ll share our weekend schedule of events, filled with essential industry topics and keynotes replete with knowledge and insight. Here’s a rundown of the three-day schedule:
Kicking off at 10 AM with a welcome message from our CEO Glen White, the first day of FinTech and InsurTech Live won’t pull any punches. We discuss racial equality, inventive financial services, and cloud migration—and that’s just the morning lineup.
Later on, we’ll cover supplier diversity, AI digital transformation, and fintech sustainability, in addition to cloud and digital transformation in global insurance. Don’t worry—we have a networking lunch in-between events! Finally, we’ll close out the day with online banking, women in fintech, and a recap of Day 1.
First we’ll hear from Scott Birch, our expert BizClik Media Editorial Director and facilitator, live from the Fintech Leaders Stage. We then jump into the future of digital payments, unicorns, and digital insurance brokers. Interested in learning more about digital underwriting and digital payment solutions? You’ve come to the right place.
In the afternoon, we’ll touch on CX in insurance, host a forum on financial services, and discuss what the world might look like as a cashless society, plus the future of challenger and neo banks. Wrapping up, we’ll talk tech and AI in insurance, PayTech, and hear from a surprise inspirational speaker. But we’re not done yet.
As is only fitting, BizClik’s CEO, Glen White, will introduce our APAC sessions, highlighting the critical role that Asia will play in the future of fintech and insurance. Following his remarks, we’ll open up the floor for a chat about digital banking, discuss technology in APAC, and hear from Dipu KV in an iconic keynote address.
After a series of thought leaders and networking sessions, we’ll head into an EMEA-focused session, which includes an EMEA technology panel, a CDO keynote, and a Europe enterprise presentation. In fact, this day’s events span the globe. Next up is a USA regional keynote, followed by a US CIO presentation and talks about enterprise.
A final end-of-event farewell will close out the weekend, wrapping up a successful FinTech and InsurTech global event. Can’t miss it. We look forward to seeing you there!