Bank of Israel Clarifies: The 200-Shekel Banknote Will Not Be Canceled
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Original source:kipa.co.il
Key Takeaways
- Tax authorities suggested removing the 200-shekel note to combat tax evasion.
- Proponents claimed ending physical cash could generate billions in extra state revenue.
- The Bank of Israel firmly stated it has no plans to cancel any banknotes.
- Officials noted that no other country has completely abolished physical currency.
The Israel Tax Authority has recently proposed eliminating the 200-shekel bill as an initial step toward removing physical currency entirely, arguing this measure could curb the shadow economy and increase annual state revenues by tens of billions. Proponents suggest such a move would help avoid harsh tax hikes on citizens.
However, the Bank of Israel swiftly dismissed these suggestions, asserting that authority over banknote issuance and withdrawal rests solely with its governor. Officials emphasized that no professional backing currently justifies such a drastic step, noting that complete cash elimination has not been implemented anywhere globally.
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