Israel’s Central Bank Takes Digital Currency Under Consideration

Israel’s Central Bank  informed on Sunday about examining digital currency as a means of making a faster payments system as well as bringing the amount of cash in the economy.

Some economists predicted after bitcoin and other cryptocurrencies appearance, that one day this technology could be used by entire economies, with central banks creating their own digital currencies.

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

“Central banks around the world are examining (the use of digital currencies) so we should as well,” the source said. The Bank of Israel declined to comment on the issue.

Payments with digital currencies allow parties to transact them without a central intermediary using blockchain technology. It uses shared ledger to verify, record and settle transactions.