The Concept of a National Cryptocurrency
Israel is considering entering the realm of digital currencies by possibly adopting a national cryptocurrency, dubbed the digital shekel. This move mirrors similar initiatives by countries like Russia and Dubai. Will this step provide modern conveniences while addressing economic challenges? Only time will tell.
Shrinking the Black Market
A significant factor driving the need for a digital shekel is the staggering black market economy, which constitutes about 22% of Israel’s GDP. Given this, the government hopes that a regulated digital currency could tighten the screws on illicit transactions, effectively giving the taxman a better shot at collecting dues. Talk about turning the tables on bad actors!
Legislation on Physical Cash
In a bold move, Israeli officials are contemplating laws that could limit physical cash transactions. Notably, there’s chatter about banning cash payments for wages altogether, pushing citizens towards digital alternatives. Some folks might worry about breaking tradition, but others see it as a leap into the future.
The Journey Towards Digital
The road to creating the digital shekel is still being paved. The Israeli government has rolled out the ‘Economic Arrangements Bill’ which, if successfully passed, will allow the Bank of Israel to explore the logistics behind this potential digital currency. Progress appears gradual, but the momentum is building.
A Lesson from the Past
A failure to pass similar legislation two years back added weight to the current discussions, with a renewed urgency for digital currency adoption expressed by the Prime Minister. In the world of politics, things often circle back like a bumpy roller coaster ride.
Collaboration with Blockchain Innovators
In this digital push, Colu, an Israel-based blockchain wallet application, is joining forces with the government. Mark Smargon, VP of Blockchain at Colu, has voiced enthusiasm for collaboration. “If this initiative becomes a reality, Colu will be happy to collaborate…as we believe digital currencies are the future of money,” he remarked. Sounds like a win-win for tech-savvy citizens who are itching to ditch their wallets!
