Israel's central bank aims to issue its own cryptocurrency

Israel's central bank in Jerusalem will issue its own cryptocurrency for a faster payment system and reduce the amount of cash in the economic system. A source in Bank of Israel also said the government is ready to legislate the digital currency into a 2019 economic package.

Bitcoin and other innovations have revolutionized the world's economic system that makes the cash method a primitive, expensive and inefficient system. Many analysts expect the cryptocurrencies technology to be used one day across all economic activity.

Tinuku Israel's central bank aims to issue its own cryptocurrency

Cryptocurrencies allow parties to conduct payment transactions directly without central bank intermediaries, using blockchain technology that uses the shared ledger to verify, record and complete transactions in seconds.

But sources at the Bank of Israel say the virtual currency to be issued by the country's central bank will be centralized and regulated. It is different than bitcoin and others that are decentralized and completely pure following the law of supply and demand.

The Israeli government has been trying to limit the amount of cash in the economy for several years. Last month, the Bank of Israel opened a proposal to create at least one infrastructure to support its super fast payment system. The central bank says the system runs 24 hours a day in 365 days a year.