The Bank of Israel and the nation’s Finance Ministry are rumored to thinking about the likelihood of issuing a state-supported digital currency, as indicated by an unknown source with the ministry. While the national bank has been thinking about the arrangement for a while, the Knesset, Israel’s single-chamber parliament, would need to approve the proposal before it could be executed. The legislature may audit a superficial plan of the financial instrument latest by January 2018.
This cryptocurrency would not be decentralized and would be issued at the will of the government, as and when they seem the quantities are fit. The citizens can use their mobile devices to transact with this new currency’s wallet and the value of the digital currency would be equal to that of the nation’s fiat, the shekel.
The authorities thinking about the move apparently consider it to be a way to decrease tax evasion by eliminating the quantity of fiat in circulation. While the national bank has not formally commented on the plan, an authority with the institution recommended that the issuance of state-sponsored cryptocurrency could be an aid to anti-money laundering projects.
In accordance with progressing attempts to decrease the amount of physical cash in Israel’s economy in order to battle increasing black market trade, the country’s government recently looked for proposals for a non-blockchain-based instant payment platform.
Colu, an Israeli wallet app, was a part of the conversation with the Israeli government in implementing a cryptocurrency.
Mark Smargon, Vice President Colu stated:
“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.”