Israel plans to create a national cryptocurrency, “an electronic shekel”, which will be equivalent in value to the existing national currency.
According to local media, following the example of Russia and UAE, Israel is considering the possibility of introduction of own currency.
According to a source close to the Ministry of Finance of Israel, the cryptocurrency will be put into the framework of a plan to reduce the amount of cash in the economy and combat operations on the black market, which currently comprises about 22% of GDP.
It is expected that national cryptocurrency will become an alternative to cash. Transaction with electronic shekel will be made directly between users without the mediation of banks. It is also proposed to pay the salaries in the cryptocurrency instead of Fiat currency.
The process of creating digital shekel is just beginning. The government proposed “Bill on economic mechanisms”, according to which the Issuer of the electronic of the shekel will become the Central Bank of Israel. The Ministry of Finance will instruct the Central Bank to establish a Commission to develop a national cryptocurrency.
Such a bill as a Supplement to the law on cash, were submitted for consideration two years ago, but was not signed by the Knesset, the legislature of the country. According to recent comments by the Israeli Prime Minister, pressure on the adoption of the digital currency in the country is very large.
Colu, the Israeli provider, cryptocurrency wallet, has supported the government in the study of digital currency.
Mark Smargon, Vice President of the company said:
“Israeli regulators for some time engaged in the study of cryptocurrencies. Our company provided them with it support. If this initiative becomes a reality, Colu will be glad to cooperate … because we believe that digital currency is the future of money”.