Israel is planning to create a national digital currency, the price of which will be equivalent to the price of the shekel.
The introduction of a government-controlled “digital shekel” will allow Israel to reduce the amount of cash in the economy, and will also make it more difficult to carry out illegal transactions in the country’s shadow market, which make up 22% of Israel’s GDP.
Based on the government’s proposed “Economic Mechanisms Bill,” the Central Bank of Israel will create and develop an electronic national currency and become the issuer of the digital shekel. In addition, it is proposed to completely transfer wages to cryptocurrency form.
The process of legislative preparation and technical development of Israel's virtual currency is at an early stage, but has already received support from the blockchain startup Colu. The Colu project, as a cryptocurrency wallet provider, has announced its readiness to cooperate with the Israeli government and provide assistance in studying the issue of digital currencies.
We have already written about national digital currencies as a way to counteract Bitcoin previously.
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