Israel Introduces Its First Regulated Digital Currency: The Shekel Stablecoin

For the first time, Israel's Capital Market Authority has given the green light to a stablecoin pegged to the shekel. Following a two-year assessment and pilot phase, Tel Aviv-based cryptocurrency exchange Bits of Gold has been authorized to issue the token. In collaboration with the Solana network and prominent crypto custodian Fireblocks, with audit oversight provided by the Big Four consultancy firm EY, the BILS token was developed. Over the past 18 months, the stablecoin sector has experienced significant growth, exceeding $300 billion, driven by the establishment of formal regulatory frameworks in major markets like the US. However, the dominance of US dollar-pegged tokens has raised concerns in non-US markets about potential financial and digital sovereignty losses if on-chain payments default to dollars. According to Bits of Gold, the Israeli shekel has proven to be one of the stronger performing fiat currencies among developed markets, backed by a robust technology sector and consistent macroeconomic management. The shekel has appreciated by over 20% against the dollar in the past year, making it the best-performing currency among countries with an annual GDP exceeding $250 billion. By bringing the shekel on-chain, it joins other leading currencies like the euro, yen, and Singapore dollar, which are gaining traction in blockchain-based financial systems.