Israel’s Capital Markets Authority gave approval for the first time to a stablecoin pegged to the shekel.
Tel Aviv-based cryptocurrency exchange Bits of Gold received permission to issue the token after a two-year evaluation and pilot process, the authority said in a post on LinkedIn.
The token, BILS, was developed in collaboration with the Solana Network and crypto-custody heavyweights Fireblocks with audit oversight provided by Big Four consultancy EY, Bits of Gold said in an emailed statement.
The size of the stablecoin sector – crypto tokens tied to the value of a traditional financial asset, usually a fiat currency – has risen in the past 18 months to more than $300 billion, driven by the establishment of formal regulatory regimes in major markets such as
The overwhelming dominance of US dollar-pegged tokens in the sector has raised concerns in non-US markets about the threat of losing financial and digital sovereignty if onchain payments all default to dollars as their unit of account.
“The Israeli shekel has emerged as one of the strongest fiat currencies among developed markets, supported by a robust technology sector and consistent macroeconomic management,” Bits of Gold said in its Monday announcement.
The shekel has appreciated more than 20% against the dollar over the past year, according to Visual Capitalist, making it the top currency among countries with an annual gross domestic product (GDP) of more than $250 billion.
“Bringing the shekel on-chain positions it alongside other leading currencies, including the euro, yen and Singapore dollar, which are beginning to gain traction in blockchain-based financial systems,” the company said.
