Cryptocurrency, Featured

Cryptocurrency Trading Boost, Bank Of Israel Contemplating State-Backed Digital Currency

Israel’s top leadership is known to contemplate about launching a virtual currency backed by the state. If that does happen, it will be a big boost for cryptocurrency trading in the country.

The Finance Ministry of Israel, as well as the Bank of Israel, has been thinking deeply about a cryptocurrency sponsored by the state, ever since Bitcoin’s price surged to an all-time high in 2017. The country’s officials belonging to the Finance Ministry mentioned that a state-sponsored cryptocurrency would be launched to bring down the volume of cash transactions for the country.

No doubt such an initiative will see a mammoth increase in the cryptocurrency trade in Israel while controlling money laundering activities and bringing down incidents of tax evasion. It is a fact that Blockchain and cryptocurrency have become a huge rage in the country.

It could be possible due to Israel’s cutting-edge technological sector and a high increase in the number of patents. Incidentally, the country is at the 10th rank for being most innovative in the entire world.

Supreme Court’s Important Ruling In Israel

The government along with some of the top institutional banks in the country have managed to gain a strong foothold in the cryptocurrency space in the recent times. In the month of February this year, the Supreme Court of the country issued a ruling that Bank Leumi cannot simply close accounts of their customers just because the latter made cryptocurrency transactions.

The landmark ruling had a huge positive impact in the virtual currency space and made other entities sit back and show their keen interest in digital currencies. The state-backed digital currencies have gained immense popularity for a number of reasons.

Countries like Venezuela and Russia have taken the lead in such an initiative so far witnessing a hike in cryptocurrency trading. Russia expressed their intentions to release a virtual coin called ‘CryptoRuble’ to have a presence in the crypto economy in October 2017, Bitcoinist wrote. Leaders in Venezuela have turned to Petro to ease the ailing fiat currency of Venezuela called Bolivar. 

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Pala Sen is an avid follower of fintech, travel and health updates, current affairs and entertainment news from all across the world and writing is a passion for her. She had been previously associated with the corporate world for several years and holds a degree in MBA and a postgraduate software diploma called GNIIT from NIIT.

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