Just like other parts of the world, cryptocurrency in Israel is also making waves. This surge related to crypto in Israel has triggered a discussion to come up with the state’s virtual currency.
The efforts in the direction
Israel’s Finance Ministry and Bank of Israel are pondering hard over the concept to launch state-own cryptocurrency. The main driven factor behind this concept was the $6737.75 +0.34% price hike of Bitcoin in the country by the end of 2017.
The officials of Israel’s Finance Ministry revealed that the cryptocurrency in Israel is firming its feet in the market. The constant and sturdy growth of crypto in Israel makes way for Israel’s cryptocurrency. It is supposed to lower down the cash transactions within the country. It is further likely to crack down the money laundering and tax evasion. The officials also hope that the launch of cryptocurrency in Israel will also make a full stop to the black market activities which comprise around 22% of the total GDP of the country.
The development regarding the launch of Israel’s very own virtual currency has come to the stage of drafting legal framework.
Crypto-Shekel is the name of Israel’s proposed virtual cryptocurrency. The value of Crypto-Shekel will be tied up with shekel, Israel’s legal currency. The surge in crypto has paced up the process of its development.
However, its implementation does not seem so easy. Cryptocurrency in the nation is subjected to a 46% tax rate on profits for corporations and a 25% tax rate for individuals.
Some market experts firmly believe that such high tax rates are a significant factor to keep people away from dealing in cryptocurrency and likely to hamper its market growth.
