The Bank of Israel has released a document on how to manufacture acceptance of Central Bank Digital Currencies (CBDCs).
The blueprint lays out how a digital shekel could be legitimized by a “network effect.”
The State of Israel would have to offer tax refunds, benefits, and wages in the digital currency, as well as accept payments of fines, fees, and taxes.
According to the Bank of Israel, state endorsement of the currency would create a ripple effect that encourages citizens and businesses to adopt the digital shekel.
“Like many other central banks, the Bank of Israel is in the process of building a work plan so that it can be prepared to issue central bank digital currency (CBDC) should it be decided to do so,” the press release states.
It adds, “A digital shekel would have the potential to become an important means of payment in the Israeli economy, but in order for that to happen, it is necessary to create a broad user base.”
💢 THE BANK OF ISRAEL
describes the advantages of CBDC: ‼️1) Can be used ONLY for what the gov. decides is legal.
2) Gov. controls when and until when you can use it.
3) Will ONLY work if the gov. decides you’ve met their conditions.
ALL CENTRAL BANKS FOLLOW THE SAME PLAN pic.twitter.com/Bu17Tj8TGK
— puritan (@puritan_777) July 19, 2023
The Bank states that lower transaction fees could incentivize businesses to adopt CBDCs for their financial transactions.
Read More: Bank of Israel Issues Guidelines on Promoting Digital Currency Acceptance
