The Bank of Israel has made a possible design to a central bank’s digital currency (CBDC) if the decision is made to introduce one in the future.

The central bank described the proposed digital Shekel (DS) as a “multifunction CBDC” to have it for both retail and wholesale in a paper published on Tuesday.

“DS will be a multifunction digital currency that will meet both retail needs of end users such as households and businesses as well as wholesale needs of financial devices,” the paper said.

The Bank of Israel would therefore provide a digital equivalent to cash while upgrading its existing settlement system that financial institutions are already using, adding “smart” functionality, such as composition and programmability.

The central bank also emphasized that no decision has been made to issue a CBDC. Therefore, the design presented by the paper should only be considered a preliminary.

The central banks in almost all of the developed economies around the world have at least investigated the possibility of issuing a CBDC for several years.

While their advocates claim that they are a tool for financial inclusion and a means of future-proofing Fiat currencies against the fall in cash use, they are also criticized by those who see them as a Trojan horse to strengthen state control over the use of money.