The Bank of Israel considers issuing state cryptocurrency Shekel to fight tax evasion. How will the digital Shekel be implemented?
26 December, AtoZForex – There is a growing interest in state-sponsored digital currencies throughout the globe. Earlier this year Russia, Dubai, and Estonia, have looked into the benefits of launching their own blockchain-based cryptocurrencies.
Adding to this list of countries that are interested in a state-sponsored cryptocurrency is Israel. According to the Jerusalem Post, an official of the Finance of Ministry revealed that the Bank of Israel considers issuing state cryptocurrency Shekel. Furthermore, it is looking into implementing the blockchain technology for its operations.
Israel considers issuing state cryptocurrency Shekel – Why?
The unnamed official of the Finance Ministry said that for months the Bank of Israel thought of issuing a state-sponsored cryptocurrency. The benefits of such a digital Shekel are innumerable for the Israeli government.
When utilizing the digital Shekel, the government can reduce the cash circulation. Also, they can fight money laundering and tax evasion. Considering that the “black” economy accounts for 22% of Israel’s GDP. However, it is not certain yet that the digital Shekel will be implemented. As the official told to the Jerusalem Post:
“There’s a lot that people need to think about before going through with this reform. We’re looking at the legal, financial, regulatory and money- laundering sides of this.”
How will the state cryptocurrency Shekel be implemented?
According to the official, the digital Shekel will be used similar to cash, and it will have the identical value of the domestic fiat. Hence, instead of cash you will have the Shekel stored in a digital wallet, which is accessible on any of your mobile devices. Transactions will then be made instantly through digital codes, without the transaction time of a bank wire. Commenting further, the official of the Finance Ministry said that:
“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.”
In spite of the many benefits, it was made clear by the official that the Bank of Israel and Finance of Ministry are still debating about the launch of the digital Shekel. Furthermore, the Bank of Israel will need to get an approval of the Knesset, before they can issue the digital Shekel. The Knesset is the legislative branch of the government in Israel.
Do you think it is just a matter of time before Israel and other countries will introduce their digital currencies? Let us know in the comments section below.