Defining cryptocurrencies has become a bit of a word game. Are they currencies? Are they property? Are they financial assets? Some governments may not be clear on what they want to call them, but they definitely know what the don’t want to call them.
Israel is the latest currency that has declared Bitcoin a non-currency. Nadine Baudot-Trajtenberg, who is the deputy governor of the Bank of Israel, had this to say:
She further explained her recent announcement at a recent finance committee meeting:
The bank has also received numerous complaints about the difficulties experienced by citizens wanting to buy virtual currencies from their traditional fiat money accounts. The deputy governor stated that because digital currency “may be used to launder money, finance crime and so forth”, the banks could face compliance risks.
She went on to add that banks have a responsibility in this regard as some citizens may transfer fiat currency “to an exchange where virtual currencies are sold may later transfer the money anonymously to any unreliable party in Israel or abroad.” Because the onus is on them, these individual banks are responsible for regulating this process, and not the central bank. She added:
However, panel members at the meeting stated that authorities needed to move fast to develop crypto regulations. Panel chairperson, Moshe Gafni, had this to say:
In addition, Gafni has said that the central bank and regulatory bodies have a month to compile and submit a report on how to regulate the industry in the country.
Even though Israel is not interested in decentralized cryptos, they do want to be a part of the digital currency revolution, previously announcing plans to develop their own state-controlled digital shekel.
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Adeniyi Salau is a Digital Marketer, Project Manager and SEO Expert of repute with about a decade of Blogging and online marketing experience. He is always ready to share his experience with others.