The Bank of Israel is monitoring scenarios that could influence a decision to issue a digital shekel, including the widespread adoption of stablecoins. The central bank has not yet made a decision on issuing a central bank digital currency (CBDC), but a 21-page report outlining potential scenarios notes that the Bank of Israel must be prepared to issue a digital shekel if certain variables support it. These variables include a decline in cash usage, significant use of stablecoins, competition in the domestic payment system, and significant technological developments in payment systems. The report also notes that a decision by the US or the European Union to issue CBDCs could influence the Bank of Israel's decision.

(By Amitoj Singh)