Following in the strides of Russia and Dubai, Israel is thinking of offering a federal cryptographic money – a computerized shekel – which would correspond to the physical currency.
Interest in National Cryptocurrency, not Bitcoin
If the national bank gives the venture the green light, the Israeli government is prepared to incorporate it in its 2019 spending plan.
In a comment to Reuters, the Jerusalem Post provided a bit more detail on how this national digital money could function: “You can imagine that instead of giving you a piece of paper saying the Bank of Israel on it, I can send you a piece of digital code that was issued by a central bank,” a source told the outlet.
While Israel may be keen on digital forms of money, it’s not exceptionally in favor of the coin that began the crypto-fever: Bitcoin.
Recently, CNBC revealed that Israel is hoping to boycott organizations using the pioneer digital money as well as different cryptocurrencies from exchanging on the Tel Aviv Stock Exchange.
Israel is not the first country that’s exploring the possibility of launching a cryptocurrency or utilizing blockchain innovations in some mold. In August, Estonia declared it intends to dispatch its cryptocoin, called Estcoin, through an ICO (initial coin offering), and China and Singapore have been trying their own particular computerized cash frameworks for some time now.
As per the sources near the Finance Ministry, Israel’s underground market is roughly 22 percent of the nation’s GDP. A digital cash, coupled with the administration of Israel, would also make black market exchanges less conceivable.
Moreover, administrators are thinking about legislation that would generously decrease the measure of physical cash in circulation. One proposal goes as far as suggesting a law against paying wages in physical money.
In any case, the procedure for the production of the computerized shekel is simply getting started. The administration has offered the ‘Economic Arrangements Bill,’ which, if passed would elect a different board for the Bank of Israel to consider making the digital shekel.
A Society Receptive to Innovation
The expansion of the physical money laws is the aftereffect of a disappointment by the Knesset to pass legislation of a similar kind two years prior. The push for digital cash adoption is high, as late remarks from the Israeli Prime Minister show.
Colu, an Israel-based Blockchain wallet application, has played a significant role in discussions with the Israeli government in its pursuit of a computerized cash. Stamp Smargon, VP Blockchain Colu said:
“The Israeli regulators have been looking into digital currencies for a while; we were even part of this conversation. If this initiative becomes a reality, Colu will be happy to collaborate [as] we believe digital currencies are the future of money.”