Palestine Considering Launch of Own CBDC

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The central bank of Palestine, the Palestinian Monetary Authority, is reportedly exploring the possibility of issuing a central bank digital currency (CBDC), Bloomberg reports.

The governor of the institution, Feras Milhem, has said the central bank is conducting 2 separate studies aimed at finding out whether it could benefit from its own digital currency as well as its possible use cases for domestic and international payments.

It is worth mentioning that Palestine does not have its own official currency. Over the past 70 years, its citizens have been using the Israeli shekel for daily transactions, with the US dollar and the Jordanian dinar acting as store of values.

Some other central banks are either considering or already developing their own central bank digital currencies. Let’s take China as an example. The People’s Bank of China, the central bank of the country, has been developing its digital yuan for a while now and has even conducted multiple tests in several provinces of the country, while Sweden has also started issuing its own CBDC.