On Aug 26, the Jerusalem Post wrote a very good story about the chances of Israel adopting a state-backed crypto just like Venezuela did a few days ago, although for completely different reasons.
While Venezuela launched the Petro recently as an outrageous Hail Mary as it faces 6-figure inflation, Israel's Central Bank and Finance Ministry are purportedly considering a national crypto as a method of combating tax evasion.
Since Bitcoin's popular skyrocketing period from late last year into early this year, crypto has become a harsh government issue everywhere from Canada to Venezuela. President Nicolas Maduro lately made headlines for launching the global's first state-backed crypto known as the Petro.
Amidst increasing inflation, record unemployment and a deadly lack of food and important supplies, the Petro is Venezuela's Bitcoin attempt at rescuing its economy by pinning its currency value to its significant oil production.
Concerned authorities in Tel-Aviv and Jerusalem are planning to form an Israeli state-backed cryptocurrency for a variety of reasons. The Bank of Israel and the ministry of Finance are planning to launch a formal Israeli digital currency as a major tool to aid the state combat tax evasion. Under Israeli tax codes, all corporate organizations pay 46% and private individuals pay 25%.
Regardless of this, the already existing cryptocurrency sector is not showing any sign of decelerating in the future. Israel is a home of crypto and the world’s most fertile Blockchain innovators. Listed among the top ten innovative countries in the world, the bank of Israel has now become much more involved in crypto, but not in a manner market traders would inevitably hope for.
Earlier in 2018, Israel's Supreme Court clearly ruled that Bank Leumi can't lawfully close customer accounts due to crypto transactions.