Response bitcoin: in Israel want to create a national cryptocurrency

© RIA Novosti / Vladimir Astapkovich in fotobasketball bitcoin. Archival photoResponse bitcoin: in Israel want to create a national cryptocurrency© RIA Novosti / Vladimir Astapkovich the image Bank

The Ministry of Finance of Israel considers possibility of introduction of own cryptocurrencies – «e-shekel» — in the framework of a plan to reduce the amount of cash in the economy and combat operations on the «black market», the newspaper «gaarets».

The publication notes that Israel is not the first country where the idea to produce the electronic equivalent of the national currency. In September the Central Bank of Sweden has published a document which provided an analysis of the feasibility of electronic crown «e-krona».

However, according to the newspaper, Israeli and Swedish electronic currency will not be a complete analogue of the bitcoin cryptocurrency — «encrypted, decentralized currency that is not produced by any government and which has no clear equivalent value».

«In the case with Sweden or Israel, the cryptocurrency will be equivalent in value to the existing national currency… Electronic version will not set a goal to change the monetary system of the country», — the newspaper writes.

Alternative to cash

It is assumed that the electronic shekel will be an alternative to cash. Transaction with e-NIS will be carried out directly between users without the mediation of banks.

«Instead of having to carry a bill in the amount of 200 shekels (about $ 57), the Israelis just can use a number of codes in your phone, which will be encrypted to the 200 shekels», — says the publication.

It is assumed that the Issuer of the Israeli cryptocurrency will become the country’s Central Bank. To e-shekels, as traditional cash, you through banks, ATMs or regular money transfers between customers.

According to the newspaper, in 2019 under the «Distribution of economic law» the Israeli Ministry of Finance will instruct the Central Bank to create the Commission on the development of e-shekels.

According to the publication, «Installation economic law» 2019, in General, focused on the formation of the body of legislative acts, which will reduce the volume of cash in the economy. The reduction of cash in circulation will help to reduce losses of the state budget from the operations on the «black market».

According to the newspaper, the volume of Israeli «black market» today is about 22% of GDP. Illegal transactions in this sector lead to the fact that the state Treasury annually loses about 50 million shekels ($15 million) of uncollected taxes, equivalent to the educational budget of the country.

The decline of cash in the economy can also be a part of the fight against terrorist financing, because cash is one of the main sources of sponsorship of extremism.