Israel examine possibilities for Cryptocurrency Instant Payments
Central Bank of Israel wants a nationwide real-time payment system
The Central Bank of Israel is examining possibilities to issue a cryptocurrency in support of a nationwide real-time payment system. The plan is to research and implement an online real-time system for cryptocurrency instant payments from anywhere within the country. Israel Central Bank sees this an opportunity to create a trustworthy payment infrastructure for instant payments. The context comes along in a public consultation paper published by the central bank on 15th November 2017. The paper brings out proposals to go with either “centralized or distributed – that will support immediate payments in Israel.”
Anonymous source on Israel’s Cryptocurrency Instant Payments
According to an anonymous tip given to Reuters from an employee in Israel Central Bank, the bank is looking into creating a blockchain-powered virtual currency for an efficient payment infrastructure. There are fast payment gateways in countries like Singapore and United Kingdom as cited in the BOI paper. However, according to the anonymous banker, “a central bank-issued digital currency is another form of an advanced payments system which currently does not exist.”
The anonymous bank official further states that unlike decentralized virtual currencies like Bitcoin, the central bank issued currencies will be ‘centralized, safe and abide by money laundering rules’. The bank source further states;
Central banks around the world are examining (the use of virtual currencies) so we should as well.
A virtual currency will help the government of Israel to decrease the amount of paper-based cash in circulation. Currently, Israel’s national output estimates a 22 percent in the black economy.
There are many banks globally looking at issuing cryptocurrencies. There is research activity ongoing to explore the possibilities of successful virtual currency issuance. China is trying to issue a virtual currency research institute which had a successful start early this year. This allows Central Bank of China to issue its own government regulated cryptocurrency on the blockchain to the market. Meanwhile in Russia, Moscow’s political elite and the Russian President Vladimir Putin had a meeting in October 2017 to discuss on a state-issued virtual currency, referred to as the ‘CryptoRuble’.