First ever Israeli shekel-backed stablecoin approved for pilot launch
First ever Israeli shekel-backed stablecoin approved for pilot launch
Israeli crypto financial services company Bits of Gold, operating under the Israeli Capital Market, Insurance and Savings Authority, announced it has received the regulator’s approval to launch its Shekel-backed 'stablecoin' pilot named BILS
BILS, a stablecoin fully backed by and pegged to the New Israeli Shekel (NIS or ILS), is being launched by Israeli crypto financial services company Bits of Gold.
Bits of Gold has received the approval to commence the pilot phase within a regulatory "Sandbox", aimed at examining several aspects of the stablecoin, in full coordination with the Israeli Capital Market, Insurance and Savings Authority. The stablecoin will correspond to leading global standards and the principles draft issued by the Bank of Israel regarding stablecoins.
Stablecoins provide a bridge between traditional and digital currencies and promote usability through daily trade transactions.
The BILS pilot is based on the Solana blockchain. Fireblocks, a key player in the Tel Aviv Stock Exchange’s Project Eden, a POC of the first digital government bond issued by the Israeli Ministry of Finance, will contribute with its institutional-grade infrastructure to manage the issuance of the currency. Privacy features will be incorporated through the utilization of Zero Knowledge Proofs (ZKP) technology with global ZKP leader QEDIT, which will also help establish the technology infrastructure for the entire project. To ensure transparency and accountability, EY (Ernst & Young), will advise Bits of Gold on the set up of processes and controls over the project.
“Driven by our mission to promote cryptocurrency access in Israel and the world, Bits of Gold has been a digital currency gateway for over a decade”, said Youval Rouach, Bits of Gold's co-founder and CEO. “We are proud to introduce BILS, a ground-breaking development that literally connects digital currencies into the Israeli economy. The introduction of BILS marks a significant progression in integrating digital currencies into the Israeli economy, while expanding financial accessibility. Now, anyone with the internet can engage in financial transactions, all without the prerequisite of a traditional bank account."
Michael Shaulov, Co-founder and CEO of Fireblocks, added, “The introduction of the first Shekel-backed stablecoin marks a pivotal moment for the Israeli financial system, enabling greater accessibility and unlocking important use-cases. Fireblocks is proud to play our part in providing a highly secure infrastructure for the issuance, custodying and distribution of BILS.”
Echoing the enthusiasm, Jonathan Rouach, Founder and CEO of QEDIT, said: "With Bits of Gold's vision of a robust Shekel-based Stablecoin in Israel, it was apparent that regulation compliance and privacy advancement were integral. Zero-Knowledge Proofs will equip BILS with unprecedented security levels and the Solana system integration paves the path for globally compliant privacy technologies."
