Did the comments made by the Israeli Prime Minister Benjamin Netanyahu, also known as Bibi, create a stir in the central bank of Israel?
As Bitguru reported earlier, just a week or two ago, the prime minister made some comments on bitcoin and its implications. He noted that cryptocurrencies like Bitcoin could eventually do away with banks and other sorts of institutions due to the fact they are primarily middlemen. He addressed the fact of disintermediation and stated: “the truth behind what I just said is what’s propelling bitcoin upwards.”
These statements plus movements made by the other countries like Russia, China, USA, and others, may have pushed the Israeli Bank to seriously consider their own cryptocurrency offering.
The Bank of Israel and state-sponsored and the CryptoShekel
The central bank in Israel is studying the benefits of investing efforts into their own state-backed cryptocurrency, there are a few confirmations swirling around as to this activity by several prominent members of their state government. These officials have chosen to stay anonymous but have stated that they believe there are efforts underway, with the intent of conducting due diligence on this matter.
They are seeing that the blockchain provides a significant innovation and could prove to help improve lives through its inherent nature of being a disintermediation agent. The next aspect of this initiative is that there is a benefit that is seen in the reduction of physical shekel transactions. The problem with physical transactions is that one can account for money earned and spent in a different manner, this lack of full transparency means that there can be many instances where transactions are not accounted for. When transactions are not accounted for the tax man of the government is at poorer by the shekels that were not acquired due to lack of reporting. In addition to solving more of the tax problem and minimizing tax evasion, there also seems to be a case for the prevention of money laundering, this innovation can greatly contribute to anti-money laundering efforts due to its inherent transparent nature. It can also contribute the minimization of corruption in the government as well due to the nature of transparency, providing a significant use case for the citizens of the nation and allowing for a more democratic process.
The Ministry of Finance
The Israeli Ministry of Finance will be one of those who will be leading the charge in these regards. They are pushing for an effort to integrate an addition to a piece of legislation that will be passed through to their respective authority for approval in the month of January of next year.
This would be an important piece of legislation because it would help to form a much-needed law based framework for a CryptoShekel. This additional cause that would be added to the legislation would provide for a very rigorous and diligent proposal, giving the ministry the go-ahead or the green light to commence its tests on the state-backed crypto-currency, how it would be deployed and its various workings.