The central Bank of Israel refuses to recognize the Bitcoin as a currency

The central Bank of Israel said that it would not recognize the crypto-currencies such as Bitcoin or a currency, nor as a foreign currency. In effect, the bank believes that crypto-currencies do not correspond to the legal definition, and do not fulfil the main functions of a fiduciary currency, and traditional.

Dr. Nadine Baudot Trajtenberg/Source : Asuh

The central Bank supports the traditional banks

In a speech, the vice-governor of the Bank of Israel, Nadine Baudot-Trajtenberg, has revealed the official position of the central bank on the recognition and regulation of crypto-currencies such as Bitcoin. The first head of the central bank has also admitted to having received a number of complaints from customers regarding the fact that the banks made it difficult for the use of the money trust present in their accounts to purchase crypto-currencies, adding that it would be “difficult” to establish a regulatory framework for crypto-currencies. “The Bitcoin and digital currency similar are not currency and are not considered as foreign currencies. The position of the Bank of Israel is that they should be regarded as a financial asset, with all that this implies “, she said.

Israeli flag/Source : Coindesk

The central Bank of Israel wants to have control of crypto-currencies

Ms. Nadine Baudot-Trajtenberg spoke at a meeting of the finance committee, a meeting organized to discuss crypto-currencies. The vice-governor of the central Bank of israel has insisted on the fact that crypto-currencies do not correspond to the essential criteria of a currency. “The measure of the confidence of its users is a constitutive element of what is a currency “, she added, stressing that this trust comes only from a currency deemed legal and with legal support, which is not the case of Bitcoin. During this time, the israeli authorities are also working on a crypto-currency State called “shekel digital”. It will be identical in value to its physical version.

Source : Cryptocoinsnews