The Central Bank of Israel is “not recommended” to issue its own cryptocurrency

A research group created in November 2017 by the head of the Central Bank of Israel to study the feasibility of the bank issuing its own cryptocurrency, this week released the results of the study.

Central banks around the world are considering issuing digital currencies and using distributed ledger technology in payment systems, but no advanced economies have yet released a digital currency for widespread use. We do not recommend the Central Bank of Israel to issue its own cryptocurrency in the near future. This area should be further studied and developments around the world monitored before there is a proper basis for recommending the issuance of a digital currency.

Such findings did not come as a surprise to the banking sector in many jurisdictions, including the European Union, where the atmosphere was also not conducive to the issuance of cryptocurrencies by central banks. The European Central Bank has said that the popularity of cash and the lack of a full risk assessment are key factors behind the decision not to issue its own cryptocurrency for now.

However, the People's Bank of China (PBoC), Bank Canada, Central Banks Thailand, South Korea and the Central Bank Sweden is still considering issuing its own digital assets.

This year Israel continues to take a proactive approach to cryptocurrency in general. The Supreme Court in February prohibited banks from deliberately terminating relationships with cryptocurrency companies.

According to cointelegraph.com