Although plans for an ILA CBDC have been in place since 2021, no pilot tests have since carried forward.
Israel's central bank will support a New Israeli Shekel (ILA) central bank digital currency (CBDC) that has the optionality of bearing interest.
According to the March 11 announcement, the Bank of Israel outlined that its ILA CBDC will be implemented in a two-tier model, with instant, 24/7 payments, multi-payment support, offline use, limitations on balances and an option for the CBDC to become interest-bearing. The central bank wrote:
Currently, commercial banks in Israel pay 4.86% interest on customers’ fiat ILA deposits and savings. Under the central bank’s plans, banks would be able to hold the ILA CBDC as part of their short-term liquidity buffer, which would be non-interest bearing.
