Central Bank in Israel Declared Issuing Own Crypto Unwise
A study group in Israel that explored options of cryptocurrencies recommended that the central bank shouldn’t create its own token. The research team for this study consists of experts from several departments, set up last year by the governor of the bank. The aim of the group is to look into the issue of digital currencies produced by central banks. The results were just revealed this week.
More Research Needed First
The study states that central banks globally are looking into the prospect of creating cryptocurrencies and implementing blockchain technology. However, digital currencies are yet to be implemented on a broad scope. The team clearly recommends that the Bank of Israel not issue its own coin at this time. They have advised to keep on investigating the industry and to observe global developments. This step is crucial before having the required basis to make such a decision.
The outcome is hardly a surprise for banking organizations. Various jurisdictions, including the EU, have decided recently not to launch central bank cryptos just yet. The European Central Bank cited that the prevalence of cash and the lack of any risk assessment were the reasons for that decision.
On the other hand, a number of central banks in other countries are actively considering the technology, including the People’s Bank of China, the Bank of Canada, and the Central Bank of Sweden.
Israel is continuing to take up a more productive method in dealing with cryptos this year. Last February the Supreme Court prohibited banks from purposely cutting ties with businesses in the crypto industry.