1. PixelPlaygroundHome
  2. Web3 News

Central Bank of Israel Issues Regulations for Stable Currency: Ensuring Financial Stability

• Web3 News • 125 views

It is reported that the Central Bank of Israel issued the regulation rules of stable currency, which follows the digital asset regulation guidelines issued by …

Central Bank of Israel Issues Regulations for Stable Currency: Ensuring Financial Stability

It is reported that the Central Bank of Israel issued the regulation rules of stable currency, which follows the digital asset regulation guidelines issued by the Ministry of Finance of the country in November. The Central Bank requires the issuer of stable currency to maintain reserves matching the amount of cryptocurrency in circulation. The document also suggests that the regulatory role should be split among multiple regulatory agencies to improve efficiency, and the issuer of stable currency should obtain a business license. The issuer of a larger stable currency that may have a systemically important position should obtain the permission of the banking regulatory authority, while other issuers should be supervised by the Capital Market Authority.

The Bank of Israel issued the stable currency specification, requiring the reserve ratio to be higher than 100%

Interpretation of the news:


The Central Bank of Israel has released specific regulation rules for stable currency. It follows the guidelines for digital asset regulation that the Ministry of Finance of the country had issued earlier in November. This move signifies the growing importance of stable currency, which is a form of cryptocurrency that maintains a stable value unlike Bitcoin, which is highly volatile.

One of the primary requirements that the Central Bank has specified is that the issuer of stable currency must maintain reserves matching the amount of cryptocurrency in circulation. This means that stable coin issuers have to prove they have enough assets in reserve to back the currency they issue. This is to ensure that the currency maintains its value and is not affected by economic instability, providing stability for businesses and individuals alike.

Moreover, the regulatory role is advised to be shared among multiple regulatory agencies to ensure that the stable coin industry is regulated more effectively, providing regulatory authorities with increased oversight over the industry. The Central Bank also suggests that issuers of stable currency must obtain a business license, indicating that stable coin issuers need to be reputable organizations, subject to scrutiny and accountability by financial regulators.

The document suggests that the regulatory status of stable coins would vary depending on the scale of the stable coin issuer. The issuer of more substantial stable currency that may have a systemically important position should obtain permission from the banking regulatory authority that controls the stability of the financial system. Whereas, other smaller stable coin issuers should be supervised by the Capital Market Authority. This regulation aims to prevent threats to financial stability and protect investors by ensuring that only reputable entities can issue stable currency in Israel.

In conclusion, this regulation from the Central Bank of Israel stresses the importance of stable currency in today’s trading ecosystem. With the rise of stable currency infrastructure in the world, it is vital to implement regulations that ensure these currencies’ stability, provide accountability for issuers, and safeguard the financial system. These regulations also ensure that investors receive the necessary protections and create a safer environment for businesses to conduct transactions.

Overall, this regulation’s successful implementation would enhance the credibility of stable currency, making it a reliable and widely adopted mode of payment in Israel, ensuring financial stability in the country.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/2517/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 02/22/2023 13:50
Next 02/22/2023 14:08

Recommended articles