Israel Unveils Preliminary Digital Shekel Design, Advances CBDC Roadmap

• Israel has released a preliminary design for its digital shekel, outlining its features and potential implementation. This is part of a global trend of nations exploring CBDCs.
• While Israel CBDC’s launch remains unclear, Israel’s move aligns with the global trend of central banks exploring digital currencies, contrary to the US’s adoption of a national crypto reserve.

Just a few days after the United States via Trump confirmed BTC, ETH, SOL, XRP, ADA in Strategic Crypto Reserve, Israel is moving ahead with its central bank digital currency initiative.

Notably, marking a big leap step towards achieving this dream, the Bank of Israel has unveiled a draft design for its digital shekel (DS).

Israel Introduces Preliminary CBDC Design

Israel’s central bank, the Bank of Israel, first expressed interest in issuing a CBDC in 2017. Fast forward to 2021, Israel took the research a notch higher. As of March 3, 2025, the steering committee of the Bank of Israel published an initial proposal outlining the key features of the digital shekel.

Digging deep, the document gives the details on the envisioned ecosystem, functional capabilities, regulatory framework and technical infrastructure required for the CBDC’s potential implementation. At the time of press, Israel has not announced any definitive launch timeline.

According to an official statement ;

The DS is expected to offer a wide range of benefits to all segments of the population. It will be available to the entire public, including children, foreigners, all types of businesses, public institutions, and financial entities.

The Bank of Israel envisions the digital shekel to serve a dual purpose. This would be represented by facilitating both retail transactions for individuals and businesses and wholesale transactions for financial institutions.

Unlike traditional cryptocurrencies, the CBDC will be centrally issued and regulated, ensuring stability and compliance with national policies.

Interestingly, to support massive adoption, the digital shekel will allow users to conduct transactions without internet access.

Additionally, it will be interoperable with existing payment systems, enabling seamless transactions between DS users and those utilizing other digital payment solutions. The private sector, including Payment Service Providers (PSPs), will be responsible for customer onboarding and front-end services, ensuring an efficient and user-friendly experience.

CBDC Adoption on the Rise

Currently, 134 countries and currency unions are actively exploring digital currencies, representing 98% of global GDP. The number of nations considering CBDCs has surged from just 35 in May 2020, highlighting a growing consensus on the need for state-backed digital money.

Notably, Israel is among the many string of countries venturing into this field. It is worth noting that countries are at different stages, ranging from initial research to pilot programs and even full launches

A few nations , including the Bahamas, Jamaica, and Nigeria, have already launched fully operational CBDCs, while major economies like China and the European Union are advancing their own digital currency initiatives. Additionally, the BRICS nations, including Brazil, Russia, India, China, and South Africa, are currently testing their own CBDCs.

Notably, the European Central Bank (ECB) recently provided an update on its digital euro project, signaling increased momentum in the CBDC space.