Cryptocurrency News, Cryptocurrency Regulation

Despite Massive Support, Bank of Israel Still Uncertain About CBDC

Start Trading

According to the latest report, Israel’s central bank announced that it had garnered widespread support from its crypto community as it plans to launch a Central Bank Digital Currency in the hope that it would stimulate the country’s economy.

The BOI originally explored introducing an electronic currency in 2017. However, it wasn’t until November that the preparations were set in motion.

Following a statement in March stating that the introduction of a virtual Shekel would have little impact on the financial system, the national bank launched a public survey, resulting in 33 answers from various industries. A total of 17 responses were received from the financial tech industry, according to reports from Reuters.

“The BOI has not yet taken a definitive judgment on whether or not to issue an electronic shekel,” the central bank said, adding that the decision was still pending.

Israel Shows A Mixed Stance Towards Crypto

The government of the nation has an ambiguous approach toward cryptocurrency. In February, Israel’s financial regulator, CMA (Capital Market Authority), issued a request to Binance, the biggest cryptocurrency exchange globally, to cease operations in Israel. At the time of writing, Binance has an estimated number of 200,000 customers in the nation.

Bank Leumi, the nation’s second-largest bank by market capitalization, said that it would offer cryptocurrency trading via its digital subsidiary, Pepper Invest, later in the year. The bank has teamed with blockchain technology firm Paxos in the United States to enable BTC and ETH trading.

Several respondents feel that the electronic Shekel should be entirely anonymous, similar to cash, while the majority say that a more central and regulated payment system is preferable to them.

As the BOI noted, “the bank has pledged to maintain an atmosphere of transparency and openness in its ongoing study into the virtual Shekel, and it anticipates continuing beneficial engagement with all relevant parties at all phases of the research and advancement in the electronic Shekel project.”

Israel’s Cryptocurrency Community To Host Crypto Event In Tel Aviv 

As part of its public support for the nation’s electronic Shekel, the Israel Crypto Community (ICC) is hosting the biggest cryptocurrency event in the country, which will take place on the 3rd of November.

Participants will include eToro, iAngels, Celsius Networks, Horizon Labs, etc. The crypto event will take place in Tel Aviv and will begin from the 23rd of May until the 25th of May.

Israel is not the only country that is yet to issue a CBDC. While other countries such as the Bahamas have recently launched a CBDC, several countries such as Brazil and the UK are still evaluating its benefits to their economy. 

Start Trading

Leave a Reply

Your email address will not be published.