Israeli groups issue request for information on Distributed Ledger Technology (DLT)

A team of representatives from the Bank of Israel has issued a formal notice for information on Distributed Ledger Technology (DLT), as per a press release published on December on 18.

The objective of which is, according to the title, “Regulatory Coordination of Virtual Assets,” signifies that “regulators of the Israeli financial system believe that there is room to renew and strengthen cooperation and coordination among all regulators and the public,” with regards to the DLT.

Besides Israel’s Central Bank, the team comprises of Securities Authority, the Ministry of Finance and Justice, the Tax Authority, the Israel Money Laundering, and Terror Financing and Prohibition Authority and other national regulatory bodies.

The team incorporated would oversee developments in the local DLT industry. The document asks for the problems encountered by local DLT companies, fundraisers, investors, and customers are dealing in virtual resources as specimens.

Additionally, the demand requests the barriers in the utilization of virtual assets and the prospects of DLT in the finance industry. Finally, the report also asks how the technology can help in resolving issues like AML (Anti-money laundering) and CFT (Combatting the Finance of Terrorism).

THE INDIVIDUALS INTERESTED IN SUBMITTING THEIR POSITIONS CAN SEND IN THEIR INFORMATION UNTIL DECEMBER 31, 2018.

The document also states that the individuals interested in submitting their positions can send in their information until December 31, 2018.

In November of this year, an Israeli team investigating cryptocurrency options has recommended the country’s central bank not to issue their own cryptocurrency.

In the first week of December, former Israeli Prime Minister, Ehud Barak compared cryptocurrencies to Ponzi schemes. He implicitly expressed that “he could never invest” in digital currencies as “cryptocurrencies and bitcoins [are] Ponzi scheme.”

In closing of the document, the press release states that it can either respond to all or some of the responses it receives, or even not respond at all.

In the past, banks across the globe have shown a positive transition from blockchain and DLT to alleviate the errors and be more effective. There have been several use cases of Blockchain like identity verification, loan disbursement. Also, the banking services are uplifted. Blockchain can save $15 to 20 Billion to banks in infrastructural costs if implemented effectively