Categories: Finance

Israeli authorities form regulatory framework for digital payments

Israeli authorities form regulatory framework for digital payments

On August 1, a law came into force in Israel that recommends the use of alternative digital payment methods and prohibits transactions in cash and bank checks in large amounts.

The introduction of new restrictions on making payments in cash was announced by the representative of the Israel Tax Administration Tamar Bracha (Tamar Bracha). The goal of the reform, according to the statement of the fiscal authorities of the country, is the fight against organized crime, money laundering and non-compliance with tax laws.

From August 1, business transactions in cash exceeding 6,000 shekels ($1,700) will be illegal. Trade between individuals is limited to 15,000 shekels ($4,360) . From this date, payments for goods and services in excess of the established limit must be made using alternative digital payment methods.

Thus, the Israeli government is gradually implementing an action plan to combat illegal transactions, and is also preparing the ground for the launch of the digital shekel, “in view of the rapid development of the digital economy and payments.”

The new restrictions on cash transactions are regarded by a number of experts in the crypto community as a positive development that favorably affects the future of the implementation of cryptocurrency payments in the country.

Popular crypto-blogger Lark Davis, addressing his followers on Twitter, said that Israel is not the first and not the last country to introduce such restrictions and suggested paying attention to crypto assets.

Not the first or last country to introduce such restrictions.

Got #bitcoin?

— Lark Davis (@TheCryptoLark) July 30, 2022

However, not everyone agreed with him. One of Davis’ followers, crypto investor @lexxrand, opined that cryptocurrencies solve the problem of storing and protecting wealth, but will not replace cash. He believes that the cryptosphere, acting as a medium for everyday financial transactions, differs not for the better from the cash turnover, “because it is slower and more expensive, with difficult entry and even more difficult exit.”

In January, Yoav Soffer, project manager for the launch of the state digital currency of the Bank of Israel, said that the country is expanding research into CBDC, assessing the risks and benefits of implementing the digital shekel.

Source: Bits