Israel central bank mulls issuing digital currency for faster payments

JERUSALEM: The Bank of Israel is examining issuing digital currency as a means of creating a faster payments system as well as reducing the amount of cash in the economy, a central bank source said on Sunday, though he stressed no decision had yet been made.

The source, who spoke on condition of anonymity, also said the government was ready to legislate or include the issue in its 2019 budget and economic package if the central bank gave the green light.

The emergence of bitcoin and other so-called cryptocurrencies has led some economists to predict the technology could be used one day across entire economies, with digital currencies created by central banks.

But the Israeli source said any digital currency introduced by the country’s central bank would be centralized, safe and abide by money laundering rules – in contrast to bitcoin and its peers, which are decentralized and whose value has often oscillated wildly.