The Bank of Israel and Finance Ministry are discussing the idea of creating a cryptocurrency that is supported by the state.
The debate intensified as the national cryptocurrency sector continues to grow.
Officials from the Ministry of Finance discuss the possibility of creating a digital currency to reduce cash transactions in the country, thwarting tax evasion and money laundering. According to the activity of the black market in Israel is about 22% of GDP.
The draft framework for virtual currency controlled by the government, is in development from the beginning of 2018.
Due to the large number of patents obtained in the field of cryptocurrency and blockchain Israel occupied 10 – e a place in the world in innovation.
A number of leading institutional banks in the country have started to work in the field of digital currencies. So the Bank Hapoalim began a partnership with Microsoft Azure to use the blockchain for digitization of assets.
In February, the Supreme court has banned the country’s Bank Leumi to freeze accounts of cryptocurrency industry. This decision opened up the possibility of other companies entering the market for the cryptocurrency of Israel.
Despite the high growth of the cryptocurrency industry in Israel, some experts point to several factors that may prevent mass adoption of cryptocurrency.
First of all, it taxes too high for cryptocurrencies: 46% income tax for corporations and 25% for individuals. Experts believe that these high tax rates interfere with the market development.
Source
