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"Bank of Israel will consider issuing digital currency" Israel today

2021-11-29T21:36:18.505Z

Governor of the Bank: "We need to make sure that the payment system becomes more uniform" • The reason: the technology allows companies to develop means of payment, which gnaw at the status of money



"Today, money from the central bank exists and is respected everywhere in the economy. But as new types of money develop, there is a fear that any body that issues money will respect only 'its' money," the Governor of the Bank of Israel, Prof. Amir Yaron, said today (Sunday). , At the Banking Supervision Conference.

"As long as central bank's money-related payment methods are developed, the central bank's ability to navigate monetary policy may be impaired. Therefore, central banks have a unique role to play in making the payment system even more uniform and efficient. One way to do this is through digital currency." Of the Central Bank (CBDC).

"In light of these developments, the Bank of Israel has decided to accelerate its study, research and preparation for the possible issuance of a future digital currency, while providing an appropriate response to the various risks," the governor said.

"It is important to emphasize that, like many other central banks, the Bank of Israel has not yet decided whether it intends to issue digital currency, and we are still examining the issue. We are committed to being at the forefront of economic and technological knowledge on this issue," he added.

Technology will win in the end

In fact, the governor's intention is for technology to win in the end, that much is clear.

All the social revolutions we know, from the American Revolution to the French and Bolshevik Revolution - all took place after the Industrial Revolution.

The most important, industrial revolution was not initiated by a state or organized by any political movement.

The information revolution has not been led by countries either, and the central banks are well aware of this.

In recent years, the Bank of Israel has worked to remove barriers to entry for new banks and to adjust the regulation for them, a move designed to increase the number of competitors in the market.

Governor Amir Yaron, Photo: Yehoshua Yosef

The process led to private entrepreneurs setting up the digital bank, with close support from the Bank of Israel.

Technological development enables the establishment of new banks with a slimmer expenditure structure, which will contribute to increased competition, said Prof. Yaron.

The Supervisor of Banks, Yair Avidan, reinforced the Governor's remarks, adding that "the products and services that were once the exclusive property of the Bank are becoming freaky and offered on a wide range of platforms, channels and using advanced and innovative technology." "The traditional bodies in the world have this content. On the other hand, it is of course an opportunity to take advantage of the characteristics of the competitive environment in favor of the right strategic collaborations," he explained.

The Supervisor of Banks also mentioned the "Committee for the Examination of the Structure of Financial Regulation," which was established last August.

Today, in addition to the Supervisor of Banks, the Securities Authority is also supervised by the Securities Authority, the Capital Market Authority, which was established only about five years ago, and the competition commissioner.

The head of the Anti-Money Laundering and Terrorist Financing Authority will also be summoned to the committee.

Without ego

The idea of ​​the previous finance minister was to decentralize the powers of supervision and regulation, while finance minister Avigdor Lieberman believes that the powers should be concentrated in order to simplify the ability to make decisions and respond to the market.

The committee is headed by the director general of the Ministry of Finance, Ram Belinkov, and his deputy is the Deputy Governor of the Bank of Israel.

In this context, the Supervisor of Banks said yesterday that "the committee has a duty and responsibility to act in a professional, matter-of-fact and respectful manner, ignoring considerations of prestige, status, ego and dignity and doing what is necessary for our markets to enjoy stability and prosperity."

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Source: israelhayom

All news articles on 2021-11-29

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