Israel Is Working On A Digital Shekel

Reports say that Israel is indeed considering issuing a crypto Shekel. The Shekel has been Israel’s fiat currency, but given the mass adoption of cryptocurrencies, the financial ministry and central bank could release a legal framework for its on cryptocurrency as early as January 2018.

The digital currency would be based on blockchain technology to help Israel introduce an instant payment infrastructure. The ‘digital shekel’ would be made available to citizens over a smartphone where every transaction is recorded and the cryptocurrency itself to be stored in a digital wallet. The cryptocurrency will be issued by the central bank and is the digital equivalent of the physical currency shekel, in value.

While the talks are in “early stages”, the plan to introduce a cryptocurrency has no public timeline just yet. Further, the Bank of Israel would require an approval from Israel’s national legislature, the Knesset, to issue a state cryptocurrency.

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