TITLE: Bank of Israel Publishes Digital Shekel Project Progress Report for 2025
BODY:
On May 13, 2026, the Bank of Israel published a progress report on its digital shekel (שק"ד) project, detailing developments throughout 2025. The report follows the initial specification document released in March 2025 and outlines the Bank's continued exploration of central bank digital currency (CBDC) implementation.
The report addresses four key areas of investigation. First, a cost-benefit analysis concluded that the benefits of issuing a digital shekel outweigh the costs to the Bank of Israel, system participants, and the broader economy, supporting the economic welfare case for issuance. Second, the Bank examined the regulatory framework required to manage risks associated with system operators and participants. Third, it analysed the feasibility of a multi-purpose digital shekel capable of functioning as both a retail CBDC (serving consumers) and wholesale CBDC (serving financial institutions). Fourth, the report documents technological feasibility assessments conducted through consultations with technology companies, experts, and academics to identify potential technologies for implementing the digital shekel system.
The report also summarises public feedback on the initial specification document and presents findings from a 2025 business preferences survey regarding digital shekel usage, complementing earlier consumer research conducted in 2024.
During 2026, the Bank of Israel will continue project work toward a potential issuance decision, focusing on prioritising system capabilities and features, conducting detailed specifications, and developing an implementation roadmap. These findings, combined with additional planned technological trials, will inform a comprehensive recommendation to the Bank of Israel Governor by year-end regarding whether to proceed with digital shekel issuance.
**Reference:**
Bank of Israel Press Release, May 13, 2026