Digital Currency: Palestine sets to join the trend
The move for countries to adopt a digital currency is on the rise with Palestine joining. Although the move seeks to give the country some freedom over its finances, experts are sceptical about it. Cryptocurrencies have resurfaced in the geopolitical landscape. According to reports, the Palestinian Monetary Authority is developing a digital currency as part of a goal to achieve greater financial independence. This action would put Palestine on par with countries like Venezuela, the Marshall Islands, the Bahamas, China, and El Salvador’s most recent efforts, all of which are interested in using the blockchain to improve the efficiency of their financial infrastructure and gain a little more independence from other economic powers, while also bypassing their sanctions. The United States and Israel do not acknowledge its existence because of problematic scenario that has resulted in yet another military battle between Israel and Hamas (which controls Palestine, or the Gaza strip), and also Israel currently exercises military and even financial authority over the region. And this is where the Palestinians see blockchain as a possible relief valve or a way to protest Israel politically. Palestinians do not have their own currency and rely on a mixed economy in which Israeli Shekels (ILS), Jordanian Dinars, and even US dollars are exchanged. As a result, with an economy controlled by a competing third party, Palestinians’ financial sovereignty is very difficult to achieve when Israeli banks restrict their actions. Banks are now prohibited from performing large cash transactions in Israel. It also sets monthly limits on the amount of money Palestinians can send to Israel per month. According to a Bloomberg report, this obstructs financial transactions between Palestinians and may be one of the most practical reasons for attempting to establish a sovereign currency free of Israeli influence. As a result, they [the Palestinians] sometimes have to […]
Israel’s Central Bank Digital Currency Project is on the way
Israel is the latest country to admit that it has been committed to developing a central bank digital currency. Speaking at the Fair Value Forum, Bank of Israel Deputy Governor Andrew Abir said that the institution he represents already has a digital shekel pilot program. More importantly, he confirmed that Israel’s CBDC already exists. But […]