The Central Bank of Israel and Finance Ministry are discussing the idea of creating a cryptocurrency that will be supported by government.
The idea of cryptolestes started
to discuss the end of 2017, when bitcoin showed rapid growth. However, the interest in this topic continues to grow because of the cryptocurrency sector is constantly growing.
Officials from the Ministry of Finance believe that through the national cryptocurrency will be able to reduce the number of cash transactions in the country, as well as to prevent tax evasion and money laundering. According to preliminary estimates, the activity of the black market in Israel is 22% of GDP.
It is worth noting that Israel is gradually implementing digital technologies in various sectors of the economy. Due to the large number of patents in the field of cryptocurrency and blockchain Israel ranked 10th in the world rankings for innovation.
Leading institutional banks in the country are also beginning to work in this direction. For example, Bank Hapoalim began
partnering with Microsoft Azure to continue to use blockchain technology for the digitization of assets.
In February the country’s Supreme Court banned
Bank Leumi to close accounts of customers associated with cryptocurrencies. This decision allowed companies that are interested in working with cryptocurrencies, go to market digital asset of Israel.
However, it should be noted that Israel has very high taxes, including the income tax is 46% for corporations and 25% for individuals. According to experts, such high tax rates are hindering the development of the cryptocurrency industry.