The Central Bank of Israel along with the Finance Ministry reportedly still hang on to the concept of the national cryptocurrency.
The financial authority believes that the launch of the national coin – crypto shekel – may boost measures against transactions in the shadow market. In particular, this segment accounts for about 22% of overall GDP in Israel.
Israel is reportedly developing the plan to fight against the money laundering using digital coins, with the final crypto regulation to come into force this October.
High taxes are believed to be the main obstacle for the crypto industry – the current tariff on digital assets is 46% for corporations and 25% for individuals.
In early 2018, Israel's Supreme Court ordered Leumi bank not to block accounts of the local crypto platform Bits of Gold. This means that Israeli authorities seemed to advocate reasonable regulation of the cryptocurrency segment.
Local banks in their turn are actively attempting to join the blockchain and crypto segments via entering into partnership agreements with the leading technology companies.
Israel expressed intentions to launch a digital shekel back in December 2017.