Bank of Israel Deputy Governor Bullish On Blockchain, Says Cryptos Can Assist Financial System
Cryptocurrencies have the potential to contribute to the monetary and financial system in the long term, according to Isreal’s Central Bank governor.
Speaking at the Bit2c Crypto Conference on Thursday, Dr. Bodo-Trachtenberg, Deputy Governor of the Bank of Israel emphasized the value that giving users control over their financial data and technological decentralization as the main motivating factors that would lead Israel to adopt blockchain technology in their central banking operations, Finance Magnate reported.
The Deputy Governor went on to say that cryptocurrencies have the ability to break down financial monopolies and level the fiscal playing field in terms of access to technology.
“The technology of distributed and encrypted currencies has the potential to contribute to the monetary and financial system in the long term. You have to see what you allow and where you turn down your enthusiasm,” she said.
The deputy governors’ statement follows last month request by local banks calling for the Bank of Israel to publish guidelines and its regulatory plan for cryptocurrency in the country, according to Ctech.
As Adv. Guy Lachmann, a partner at law firm Pearl Cohen Zedek Latzer Baratz noted during the conference, Israeli law will include digital currency in its official definition of examples of financial assets from October 2018.
Lachmann said the Israeli government is working on heavy regulations for initial coin offerings and token generation events, and also noted that sustainable regulation will be required for cryptocurrency exchanges, but for pure blockchain technology no regulation is necessary.
The public and government interest in blockchain technology in Israel have seen a surge in interest this year and the country looks to become a prominent player in the cryptosphere moving forward.
Recently, Chinese Bitcoin mining giants Bitmain announced it has moved its central base operations to Isreal. The company is looking to expand its research base and seeking on 40 new researchers and blockchain experts for its office in Ra’anana.