**Israel Unveils Exciting Preliminary Design for Digital Shekel Amid Global CBDC Movement**
Israel has taken a significant step forward by releasing a preliminary design for its digital shekel, showcasing its features and potential implementation. This initiative is part of a broader global trend where nations are exploring Central Bank Digital Currencies (CBDCs). While the timeline for the digital shekel’s launch remains uncertain, Israel’s efforts align with the worldwide movement of central banks investigating digital currencies, especially in light of the recent announcement from the U.S. regarding a national crypto reserve.
Just days after former President Trump confirmed the inclusion of BTC, ETH, SOL, XRP, and ADA in the U.S. Strategic Crypto Reserve, Israel is advancing its central bank digital currency initiative. The Bank of Israel has made a notable leap toward realizing this vision by unveiling a draft design for the digital shekel (DS).
The journey began in 2017 when the Bank of Israel first expressed interest in issuing a CBDC. By 2021, the research had progressed significantly. As of March 3, 2025, the steering committee of the Bank of Israel published an initial proposal detailing the key features of the digital shekel. This comprehensive document outlines the envisioned ecosystem, functional capabilities, regulatory framework, and technical infrastructure necessary for the potential implementation of the CBDC. As of now, Israel has not provided a specific launch timeline.
According to an official statement, the digital shekel is expected to bring a wide array of benefits to all segments of the population. It will be accessible to everyone, including children, foreigners, various businesses, public institutions, and financial entities. The Bank of Israel envisions the digital shekel serving a dual purpose: facilitating retail transactions for individuals and businesses, as well as wholesale transactions for financial institutions. Unlike traditional cryptocurrencies, the CBDC will be centrally issued and regulated, ensuring stability and adherence to national policies.
To promote widespread adoption, the digital shekel will allow users to conduct transactions without needing internet access. Additionally, it will be compatible with existing payment systems, enabling seamless transactions between digital shekel users and those using other digital payment solutions. The private sector, including Payment Service Providers (PSPs), will play a crucial role in customer onboarding and front-end services, ensuring a smooth and user-friendly experience.
The interest in CBDCs is on the rise globally, with 134 countries and currency unions actively exploring digital currencies, representing an impressive 98% of global GDP. The number of nations considering CBDCs has skyrocketed from just 35 in May 2020, reflecting a growing consensus on the necessity of state-backed digital money. Israel is among the many countries venturing into this exciting field, with nations at various stages of development, from initial research to pilot programs and full launches.
