The Central Bank of Israel is moving towards stricter regulation of stablecoins, as announced by Governor Amir Yaron at the "Payments in a Changing Era" conference in Tel Aviv. Yaron highlighted the significant role stablecoins play in global finance, with a market cap over $300 billion and monthly trading volumes surpassing $2 trillion. He noted the concentration risk, with 99% of activity dominated by Tether and Circle, underscoring the need for regulatory clarity. Yaron outlined priorities for stablecoin regulation, including full reserve backing and liquid assets, while advocating for a scalable regulatory framework. Additionally, Yoav Soffer, head of the Digital Shekel project, shared plans for the Digital Shekel, aiming for it to become a central bank currency by 2026, with official guidance expected by year-end.