Israel Introduces Its First Regulated Digital Currency: The Shekel Stablecoin

The Israeli Capital Market Authority has given the green light to a stablecoin pegged to the shekel, marking a significant milestone. Following a rigorous two-year evaluation and pilot phase, Tel Aviv-based cryptocurrency exchange Bits of Gold has been authorized to issue the token. BILS was created in collaboration with the Solana network, Fireblocks, and under the auditing supervision of EY. The stablecoin market, which has expanded to over $300 billion in the past 18 months, is primarily dominated by US dollar-pegged tokens, raising concerns about financial sovereignty in non-US markets. The Israeli shekel has demonstrated notable strength, with a gain of over 20% against the US dollar in the past year, supported by a robust tech sector and prudent macroeconomic management. By introducing the shekel to the blockchain, it joins other prominent currencies like the euro, yen, and Singapore dollar, which are increasingly being used in blockchain-based financial systems.