Israel Introduces its First Regulated Digital Currency: The Shekel Stablecoin

For the first time, Israel's Capital Market Authority has given its approval for a stablecoin that is pegged to the value of the shekel. Following a two-year assessment and pilot phase, the Tel Aviv-based cryptocurrency exchange, Bits of Gold, has been authorized to issue this token, as announced on LinkedIn. The development of BILS was a joint effort between Bits of Gold, the Solana network, and Fireblocks, a prominent crypto custodian, with EY providing oversight on the auditing front. Over the last year and a half, the stablecoin market, which consists of crypto tokens tied to traditional assets like fiat currencies, has grown exponentially to over $300 billion, driven by the establishment of formal regulatory frameworks in key markets like the United States. However, the dominance of US dollar-pegged tokens has raised concerns in non-US markets about potential losses in financial and digital sovereignty if on-chain payments default to the dollar. According to Bits of Gold, the Israeli shekel has proven to be one of the stronger performing fiat currencies among developed markets, thanks to its robust technology sector and consistent macroeconomic management. The shekel has seen a significant gain of over 20% against the dollar in the past year, making it the best-performing currency among countries with a GDP exceeding $250 billion, as per Visual Capitalist. By introducing the shekel into the blockchain, it joins other major currencies like the euro, yen, and Singapore dollar that are gaining traction in blockchain-based financial systems, as stated by the company.