Governments are also trying to cash in on the cryptocurrency boom. Venezuela, Russia, Estonia, and others have all announced projects in the works or under consideration so Israel is not alone.
Following in the footsteps of Russia and Dubai, Israel is considering offering a national cryptocurrency – a digital shekel – which would correspond in value to physical shekels.
According to the sources close to the Finance Ministry, Israel’s black market is approximately 22 percent of the country’s gross domestic product. A digital currency, registered with the government of Israel, would make black market transactions less possible.
Additionally, per the news source, the government is considering legislation that would substantially reduce the amount of physical cash in the economy. For example, one suggestion would be a law against paying wages in cash.
As noted, Israel, and other countries, are looking for ways to better track everyone’s purchase behaviors in a highly centralized manner using the blockchain. It wouldn’t be surprising to see this being the first step of a long game to eventually outlaw Bitcoin and any non-state sponsored digital currency.
The controls they could try to enact particularly when moving digital shekels to bitcoin could be disturbing. I’m obviously speculating but the only reason for governments to do this is because they see more efficient ways to control their citizens.
What are your thoughts?