The Bank of Israel is considering issuing digital currency in order to create a faster payments system as well as reducing the amount of cash in the economy, a central bank source said on Sunday. The source added that no decision had yet been made and the Bank of Israel declined to comment on the issue.
The Israeli government has been seeking to limit the amount of cash in the economy for a few years since the black economy is estimated at some 22 % of national output.
The source said that the government was ready to legislate or include the issue in its 2019 budget and economic package if the central bank gave the green light. The source added that any digital currency introduced by the country’s central bank would be centralized, safe and abide by money laundering rules.
Recently, we have reported that Israel Securities Authority chief said that cryptocurrency companies should be banned from entering the exchange via a “back door”, or through the activities of an existing company that is already listed on the exchange until a proper regulatory process is in place for dealing with these kinds of companies.