Cryptocurrencies in Israel

The article dwells upon specific features of Israel’s cryptocurrency market. The author examines the use of bitcoin and blockhain technology. The research also presents basic characteristics of cryptocurrencies, worked out in whole or in part by Israeli creators, such as Isracoin and Zcash. The first one was conceived mainly as an internal Israeli form of digital currency and initially was distributed among citizens and companies registered in Israel. It was assumed that the new technology will interest even the ultra-orthodox sector receiving donations from abroad. The second was a joint project of American and Israeli scientists, and the main feature of this coin was the increased secrecy of transactions.

The article also gives a brief description of the Israeli state policy that complicated the usage of digital currencies. The fears of the government concerned risks of bankruptcy of the citizens and the likelihood of the active use of cryptocurrencies in corruption and illicit economy. Finally the article describes the possibility of using cryptocurrency to transfer funds to terrorist organizations and regimes hostile to Israel. The author concludes that so far the amount of such transactions is significantly lower than fundraising with the involvement of more common forms of payment but Israel pays attention to this problem in order to show the additional danger of the threats directed against it, as well as to declare that the «Islamic State» (prohibited in Russia) continues its activity. This is important in order to persuade the US to maintain its presence in the region.

Keywords

Israel, cryptocurrency, bitcoin, blockchain, financing of terrorism

Publication date

27.06.2020

Number of characters

28622

Cite

GOST	Iakimova E. Cryptocurrencies in Israel // Asia and Africa Today – 2020. – Issue 6 C. 52-59 [Electronic resource]. URL: https://asaf-today.ru/S032150750009878-7-1 (circulation date: 20.04.2024). DOI: 10.31857/S032150750009878-7
MLA	Iakimova, Elizaveta A. "Cryptocurrencies in Israel." Asia and Africa Today 6 (2020):52-59. DOI: 10.31857/S032150750009878-7
APA	Iakimova E. (2020). Cryptocurrencies in Israel. Asia and Africa Today (6), pp.52-59 DOI: 10.31857/S032150750009878-7

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