Israel Approves Stablecoin Pegged to Shekel

The Israeli Capital Markets Authority has granted a license for the launch of a stablecoin pegged to the shekel, marking a significant development in the country's cryptocurrency landscape. The stablecoin, identified by the ticker BILS, will be issued by the cryptocurrency exchange Bits of Gold.

After a two-year testing phase in a regulated "sandbox" environment, Bits of Gold has received the green light. In 2024, the Bank of Israel aims to engage both local and international service providers to explore innovative applications for the digital shekel.

BILS is built on the Solana blockchain, with Fireblocks serving as the custodian and EY conducting security audits. This initiative comes amid a global stablecoin market that has exceeded $300 billion, where the prevalence of dollar-pegged tokens raises concerns about digital sovereignty for various nations.

Bits of Gold highlighted the shekel's strong performance, having appreciated nearly 20% against the dollar in the past year. The introduction of this digital asset is expected to align the shekel with other major currencies like the euro, yen, and Singapore dollar, which are already integrated into blockchain ecosystems.

This development follows Kazakhstan's recent announcement of its own stablecoin, Evo, also on the Solana blockchain, and Bhutan's plans for a national stablecoin in collaboration with Cumberland.