Israel planning its own e-sheckel…

Well as the saying goes:  “if you can’t beat them then joint them”.

After dismissing private digital currencies for quite sometime, the central banks are warming up to the idea. Some central banks like Sweden are thinking of issuing their own digital currency like whereas some others like Denmark and Finland have expressed reservations against the idea.

The latest to join in the first list is Israel:

The Finance Ministry and Bank of Israel are considering issuing a digital currency, a possible response to the frenzied cryptocurrency and bitcoin craze.

The digital shekel would record every transaction by mobile phone and make it more difficult to evade taxation, according to a finance official who spoke to The Jerusalem Post on condition of anonymity.

For several months now, regulators have been examining the possibility of a state-sponsored currency, and the government could review a tentative legal framework in January. The digital shekel would be identical in value to the physical shekel currently in use.

With cash, you make a transaction immediately, unlike with a bank transfer or check, which takes a few days to clear. Digital currency would act similarly to cash by not passing through a bank-clearing system, but rather changing hands immediately.

“You can imagine that instead of giving you a piece of paper saying the Bank of Israel on it, I can send you a piece of digital code that was issued by a central bank,” the official said, with the digital currency being stored in a digital wallet.

Hmm..

It will be interesting to see the mechanism via this is issued.

2 Responses to “Israel planning its own e-sheckel…”

  1. Israel planning its own e-sheckel… | Me Stock Broker Says:

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