Bitcoin getting traction in Israel ahead of cash payment restrictions
The government authorities of Israel are moving toward strict cash payment policies, to fight against the illegal payment use of cash.
Israel is a technology adaptive region for the crypto industry. As of act 2017, any citizen of Israel can purchase crypto assets but are required to pay 20% tax on the profit generated through investment. In 2017, Israel also considered to develop & adopt Central Bank Digital Currency (CBDCs), to bring modernization in the traditional payment system but at the same time government confirmed that first, it will study hard & after that, it will introduce a precise regulatory framework to make CBDCs use case better more like cash system.
Since 2019, Israeli authorities have imposed restrictions on cash payment amounts to prohibit black market activity and money laundering, and also to catch tax evasion. Overall, Israel aimed to push the adoption of digital payment options, so that government agencies can easily track the payments and easily impose taxes.
From today, 1 August 2022, All the businesses in Israel are allowed to make payments in cash up to 6,000 Israeli Shekel ($1,760) at a time and personal cash payment is now restricted by NIS 15,000 ($4,400). It will directly force all the citizens to use digital payment options.
The in charge of executing the Israel Tax Authority (ITA), Tamar Bracha, shared the initiative of this new Israeli law and said that it will create problems for criminal activities, so it will lower the unethical use of cash payments.
Bracha said:
“The goal is to reduce cash fluidity in the market, mainly because crime organizations tend to rely on cash.”
The majority of the crypto experts shared their opinion on these new cash payment laws and claimed that it will overall push the adoption of cryptocurrencies because traditional payment systems are not able to handle the financial activities fully, so people will move toward crypto-based Payment methods.
On 30 July, popular crypto proponent & influencer, Lark Davis also shared his opinion on the new cash payment restrictions of Israel and claimed that almost every country will adopt the same rule and it will further result in better outcomes for Bitcoin.
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