In a report released this Tuesday, the Bank of Israel described their concept for the digital shekel (DS) as a “multipurpose CBDC.” This means it’s designed to be useful for everyone, from everyday shoppers to big financial institutions.

To put it simply, the report explains that “The DS will be a multipurpose digital currency that will address both the retail needs of end users such as households and businesses as well as the wholesale needs of financial entities.”

Essentially, the Bank of Israel is exploring creating a digital form of cash, while also giving their current financial system a boost. Imagine an upgraded settlement system for banks, but with added “smart” features like composability and programmability – making things more flexible and efficient.

It’s really important to remember, though, that the central bank hasn’t actually decided to issue a CBDC yet. So, this design is just a first draft, a starting point to consider for the future.

Interestingly, the idea of CBDCs is something that’s being kicked around by central banks in pretty much all developed countries worldwide for quite a while now.

Supporters say digital currencies could make finance more accessible and help cash stay relevant in our increasingly digital world. However, some critics worry that they could become a way for governments to have too much control over how we use our money – a bit like a digital “Trojan horse,” as some might say.