Israel is a country where cryptocurrencies continue to gain traction with each passing day. However, all of these developments have sparked new debates as to whether the Israeli government will issue its very own ‘digital shekel’.
Does Israel Need a Cryptocurrency?
Ever since Venezuela released its very own state-backed cryptocurrency, the Petro, other countries have been contemplating the same idea. Although Israel is hardly ever mentioned in the same breath as Bitcoin, cryptocurrencies are gaining traction quickly within the Jewish nation. So much so that the government is even considering creating its very own state-backed cryptocurrency.
For the time being, these discussions remain in their nascent stages with the Bank of Israel and the domestic Finance Ministry actively engaging in talks to reduce cash transactions within the nation.
Israel Has a Thriving Black Market For Crypto
Over the past few weeks, a few changes have allegedly been made to the potential framework of the ‘digital shekel’. However, what those changes entail remains unclear at this time.
For the Israeli government, a digital shekel can aid the government in terms of reducing money laundering and tax evasion related issues. It would also pave the way for wider cryptocurrency adoption, depending on how regulators want to tackle these hurdles.
There are still numerous countries looking to create their centralized state-issued version of Bitcoin but as Venezuela has shown, that is easier said than done. The Petro venture has been anything but successful so far, and it may very well skew any plans for similar ventures in other countries.
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