The Bank of Israel has published a report on progress in its Digital Shekel Project during 2025 as it prepares for a decision on whether to issue a central bank digital currency in Israel. The update says work since the preliminary design was published in March 2025 has deepened the Bank’s decision-making readiness, and its cost-benefit analysis concluded that the expected benefits of a digital shekel would outweigh the costs for the Bank, system participants and the wider economy. The report also sets out the proposed regulatory structure for the digital shekel system, including analysis of risks linked to the system operator and participants and the framework needed for the system to function properly. It reviews the feasibility of a multipurpose model in which the digital shekel could serve both as a retail CBDC and as a wholesale CBDC for financial institutions, and it summarizes the Bank’s technology consultation with companies, experts and academics on solutions capable of supporting the required functionality. In addition, the document reports on analysis of public responses to the preliminary design and on survey findings on businesses’ preferences regarding digital shekel use, following earlier research among private users. For 2026, the project will focus on prioritizing features and components in light of timing, cost and risk management considerations, beginning detailed design work in line with that prioritization, and preparing an issuance roadmap covering the processes and activities needed inside and outside the Bank of Israel if issuance is approved. The Bank said insights from those workstreams and further planned technology experiments will be consolidated into a recommendation on whether to issue a digital shekel, to be submitted to the Governor toward the end of the year.
Bank of Israel 2026-05-13
Bank of Israel publishes digital shekel progress report and finds benefits exceed costs
The Bank of Israel’s 2025 progress report on its Digital Shekel Project concludes that the expected benefits of a digital shekel would outweigh the costs for the Bank, system participants and the wider economy. The report outlines a proposed regulatory structure, assesses a multipurpose retail and wholesale central bank digital currency model, and summarizes technology consultations and stakeholder feedback. In 2026 the project will prioritize features, begin detailed design, prepare an issuance roadmap and submit a recommendation to the Governor on whether to issue a digital shekel.