Retail CBDCs could solve cross-border friction, but Yaron admitted that several challenges remain, including enforcing AML rules and possibly pushing private operators out of business.
The move will ensure uniformity across the board for financial instruments and will see digital currencies treated as securities, according to the Israel Securities Authority.
Investigators allege that the wallets are linked to Hamas, a group which Israeli authorities, the European Union, the U.K., and the U.S. have classified as a terrorist group.
Shira Greenberg called for wider powers to be given to the supervisor of financial service providers and opined to create an effective tax regime for the industry.
Israel's stock exchange ventures in digital asset trading under a new platform that utilizes blockchain technology, which it says will help achieve its goals, including improving customer engagement.
Attorney General Yali Rothenberg confirmed that the move to explore the use of blockchain is to open the nations to “new possibilities for the issuance and management of government debt.”
Sveriges Riksbank is also partnering with Norway in Project Icebreaker to test the viability of CBDCs in international retail and remittance payments.
Digital assets will soon be accessible to more Israelis following the endowment of the first capital markets license to a local exchange, whose eyes are set on launching a digital wallet.
Israel is slowly embracing digital assets, issuing its first-ever permanent 'crypto' license to a native firm, in line with its plan to explore and adopt a CBDC that will promote financial inclusion.
Businesses can spend a maximum of 6,000 shekels (or $1,760) in cash payments, while individuals can spend a maximum of 15,000 shekels (or $4,400), according to a news report.
The company cites the current market conditions as one of the reasons for the move; the layoffs will affect around 100 employees, with 55 of them from eToro operations in Israel.
Bank of Israel partnered with the Hong Kong Monetary Authority and the Bank for International Settlements to test the feasibility of a digital shekel for retail use.
