The Israeli startup Bits of Gold has recently been granted permission by the Capital Market Supervisory Authority to pilot the issuance of the first digital currency linked to the Israeli shekel. This new stablecoin, named BILS, is designed to reduce volatility and provide a more stable alternative to traditional currencies.
The issuance of BILS will initially take place within a controlled testing environment known as a “sandbox,” where only select structures will be able to order the issuance. Private individuals will not have access to this process at first. The pegging of BILS will be done in accordance with the requirements of the Bank of Israel at a 1:1 rate, meaning that for every BILS issued, the company must hold 1 shekel in cash or low-risk securities.
The goal behind creating this currency is to provide an alternative means for financial transactions to take place without requiring a traditional bank account. With BILS, individuals and businesses can conduct transactions with greater ease and convenience, without being subject to the limitations and fees associated with traditional banking systems.
