Israeli Official Says Digital Payments ‘Eroded’ the Need for Cash

Amid an ever-changing financial sector, an Israeli Central Bank official has said that digital payments have “eroded” the need for cash. Indeed, Andrew Abir, the deputy governor of the Bank of Isreal, noted that the role of traditional paper currency has been threatened by the continued development of its digital counterpart.

This statement arrives as a plethora of Central Banks have sought to create their own Central Bank Digital Currency (CBDC) pilot programs. Subsequently, it showcases a greater transition in perspective for many of these countries. The greatest question that now exists is just how different the finance sector could look throughout the globe in a matter of years.

Also Read: SWIFT Ready to Launch CBDC & Challenge BRICS Currency

Israeli Central Bank Official Champions Digital Payment Future

Throughout the last several years, the digital asset sector has evolved to combat the steadfast dominance of traditional finance. That has been seen in the impressive technological strides that the industry has taken. Subsequently, many questions about what this could mean for traditional financing facets soon.

For many Central Banks, digital currency provides a window into future capabilities. Indeed, Israeli Official Andrew Abir has recently said that digital payment options have “eroded” the role of cash in the financial sector. The Central Bank deputy governor remarked when giving a speech at the April 16th Engines of Israeli Ecosystem event.

Also Read: Currency: Cash Reigns Supreme As Stocks Sway In A New Market Paradigm

Moreover, he used the platform to announce a new sandbox for digital currency testing. Specifically, he noted that it would test the country’s CBDC called the digital Shekel. Its presence will allow financial entities and financial tech companies to help develop use cases for the digital asset.

Additionally, Abir noted the CBDC’s presence as a “trustworthy catalyst” for competition among banks. In Iraels case, Abir is leaning on versatility to allow its competition with other digital payment options.

There is no denying that digital payment solutions have superseded cash as the most often-used transaction option. Subsequently, there is something to the idea that digital asset options could further lessen the prevalence of cash in the future. Especially on an international level.