Israel moves to tighten stablecoin regulation and advance its digital shekel roadmap, aiming to protect payments infrastructure amid rapid private crypto adoption.
Israel is advancing toward stricter stablecoin regulation while accelerating plans for a central bank digital currency (CBDC), the digital shekel. Bank of Israel officials emphasized the need to safeguard the payments infrastructure as private cryptocurrency usage grows. Governor Amir Yaron reiterated the systemic importance of the $300 billion stablecoin market with $2 trillion in monthly transactions, dominated by Tether and Circle, advocating for 1:1 reserve backing and robust oversight. Digital shekel project head Yoav Soffer confirmed the CBDC roadmap targeting 2026 and integrating stablecoins into its policy framework, with official recommendations expected by year-end.