Israel Introduces Its First Regulated Digital Currency: The Shekel Stablecoin

In a significant development, Israel's Capital Market Authority has granted approval for the issuance of a stablecoin pegged to the shekel, marking a first for the country. Following a two-year evaluation and pilot process, Tel Aviv-based cryptocurrency exchange Bits of Gold has received authorization to issue the token. The BILS stablecoin was created in collaboration with the Solana network and Fireblocks, a leading crypto custodian, with auditing oversight provided by EY. The stablecoin market, which has grown to over $300 billion in the past 18 months, is dominated by US dollar-pegged tokens, prompting concerns about financial and digital sovereignty in non-US markets. The Israeli shekel has been a strong performer among developed market currencies, driven by a resilient tech sector and effective macroeconomic management, gaining over 20% against the dollar in the past year. By introducing the shekel to the blockchain, it joins other major currencies like the euro, yen, and Singapore dollar, which are increasingly being used in blockchain-based financial systems.