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Israel’s Central Bank Signals Improved Stablecoin Oversight as Digital Shekel Plans Advance

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Israel’s Central Bank Signals Improved Stablecoin Oversight as Digital Shekel Plans Advance

Bank of Israel Governor Amir Yaron said stablecoins can no longer be viewed as marginal, citing their trillion-dollar trading volumes and growing systemic risks.

By Oliver Knight|Edited by Omkar Godbole
Dec 1, 2025, 11:30 a.m.
Israel Central Bank signals improved stablecoin oversight (Ben Samocha)

What to know:

  • Governor Amir Yaron said stablecoins are now systemically relevant, noting more than $2 trillion in monthly trading volume and warning that regulators can no longer treat them as peripheral.
  • He highlighted extreme concentration risk, with 99% of global activity dominated by Tether and Circle, and outlined priorities including 1:1 backing, liquid reserves and a scalable regulatory framework.
  • Israel’s digital shekel team published a 2026 roadmap, with project lead Yoav Soffer calling the CBDC “central bank money for everything” and signaling official recommendations may arrive by year’s end.

Bank of Israel Governor Amir Yaron signaled that the country is preparing for far more active oversight of stablecoins.

Speaking at the Bank of Israel’s Payments in the Evolving Era conference in Tel Aviv, Yaron framed private digital dollars as a payments force that regulators can no longer treat as peripheral.

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Yaron stressed that stablecoins have already become deeply embedded in global money flows, noting a market capitalization above $300 billion and more than $2 trillion in monthly transaction volume.

“Given adoption among the public, it cannot be said that this is a marginal phenomenon,” he told attendees before comparing the sector’s scale to the balance sheet of a mid-sized global commercial bank.

Stablecoins are cryptocurrencies whose values are pegged to an external reference, such as fiat currencies. These tokens help investors bypass price volatility associated with other digital assets and are widely used in trading and cross-border transactions.

The governor highlighted the industry’s concentration risk, pointing out that 99% of stablecoin activity is controlled by just two issuers: Tether and Circle. Such centralization, he argued, amplifies systemic vulnerabilities and raises the stakes for regulatory clarity.

Yaron then laid out a series of pillars private issuers and supervisors must prioritize, these included fully 1:1 reserve backing, liquid reserve assets and the creation of a scalable regulatory framework.

Plans for a digital shekel were also discussed at the conference by Yoav Soffer, head of Israeli digital shekel project, who said that the digital shekel would become "central bank money for everything" while releasing a 2026 roadmap that included an intention to provide the official recommendations by the end of the year.

"The revelation of the new roadmap for 2026 demonstrates that the Bank of Israel, like the ECB, is accelerating the pace to the launch of the CBDC," Ben Samocha, CEO of media company CryptoJungle, told CoinDesk.

IsraelCentral BankCBDCStablecoins

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