Israel has launched its first stablecoin, which is pegged to the country’s shekel currency.
Israel's Capital Market Authority has granted approval to Tel Aviv-based crypto exchange Bits of Gold to issue the digital shekel token after a pilot process.
The digital shekel, called BILS, operates on the Solana (SOL) network with auditing oversight provided by Big Four consultancy fErnst & Young (EY).
Stablecoins, which are cryptocurrencies pegged to the value of a traditional financial asset such as a fiat currency, have grown into a $300 billion U.S. industry worldwide.
Most stablecoins are pegged to the U.S. dollar, which is the world’s reserve currency.
However, the Israeli shekel has emerged as one of the stronger performing currencies among developed economies.
Over the past year, the shekel has gained more than 20% against the U.S. dollar, according to currency market data.
The shekel has been the best-performing currency among countries with an annual gross domestic product (GDP) exceeding $250 billion U.S.
Analysts say that bringing the shekel onchain positions it alongside other leading currencies such as the euro and Japanese yen.
