Bank of Israel Moves Forward with New Digital Shekel
The Bank of Israel has advanced its digital shekel project, concluding benefits outweigh costs and detailing progress in regulation and technological.
Jerusalem, 13 May, 2026 (TPS-IL) — Following the publication of the preliminary design document for the digital shekel last year, the Bank of Israel continued to deepen its work on the various aspects related to the possible issuance of a digital shekel. Today, the Bank of Israel published a document reviewing progress in the Digital Shekel Project during 2025
Cost-benefit analysis: Based on the preliminary design, the team sought to assess the costs to the Bank of Israel, to system participants, and to the economy as a whole that could result from a possible issuance of a digital shekel, and whether those costs would be outweighed by the expected benefits. The team concluded that the benefits exceed the costs, and that issuing a digital shekel would be worthwhile from the perspective of overall economic welfare.
The regulatory structure for the digital shekel system: In this context, the various risks expected to be associated with the activities of the system operator and its participants were analyzed, and the regulatory framework required to ensure the proper functioning of the system was discussed.
Analysis of the feasibility of a “multipurpose digital shekel”: The preliminary design document stated that the digital shekel could operate both as a retail CBDC and as a system serving financial institutions, namely a wholesale CBDC.
Assessment of technological feasibility: Following publication of the preliminary design document, the Bank of Israel invited companies, technology experts, and academics to participate in a consultation process aimed at exploring potential technologies capable of delivering the functionalities required for the digital shekel system.
In addition, the report describes the in-depth analysis of the public responses received in relation to the preliminary design document, as well as the findings of a survey on businesses’ preferences regarding the use of the digital shekel, following research conducted in 2024 among private users.
