The American social network Facebook announced in May the release of a new digital currency called Libra. The government of Israel is now reviewing its policy on its own banking system to eliminate the crisis.
According to the information provided by the Chief Inspector of the Bank of Israel, Hedva Bar, the new digital currency will undoubtedly lead to a change in the Israeli banking system, which could result in the collapse of the system. The main reason for the threat of Hedwa Buck is that money laundering issues will come to the fore. In addition, the Israeli authorities will not be able to properly control the cryptocurrency market.
Israel in no way opposes innovations in the monetary area, however, the Bank of Israel should keep the situation under control and manage risks, Bar concluded.
The main focus of the Israeli bank will now be made in the digitalization of payment processes – within a few years, all payments will be transferred to the field of digital technology. In addition, it is necessary to make it so that all users of banking services have an instant opportunity to make such payments. Only if these conditions are met, the Bank of Israel can partially disassociate itself from the role of regulator in this area of the economy, the chief inspector of the Israeli bank concluded.