Skip to main content

Palestinians Ponder Digital Currency as Move for Monetary Independence

Palestinians Ponder Digital Currency as Move for Monetary Independence

The Palestine Monetary Authority is exploring the possibility of issuing its own digital currency. For Palestinians, the minting of a national coin would represent a step, at least a symbolic one, towards achieving monetary independence from the State of Israel.

Digital Currency to Help Palestinians Cope With Israeli Restrictions

Palestinians are currently conducting two studies on the matter of digital currency. While a decision is yet to be taken, the intention is to eventually employ a digital coin “for payment systems in our country and hopefully with Israel and others to use for actual payments,” Feras Milhem, governor of the Palestine Monetary Authority (PMA), told Bloomberg Television.

Palestinians Ponder Digital Currency as Move for Monetary Independence

A digital currency issued by the institution that would one day become the central bank of a Palestinian state could potentially provide the Palestinian financial system with a level of monetary independence from Israel. In accordance with the ‘90s accords with the Israeli side, Palestinians don’t have their own fiat money but use the Israeli shekel as a de facto currency, alongside the Jordanian dinar and the U.S. dollar.

As a result of various restrictions, including an Israeli law banning large cash transactions and monthly limits on shekel transfers back into Israel, Palestinian banks are now flooded with Israeli cash. They often have to borrow to cover foreign exchange payments to third parties, the report notes. These are some of the reasons why the Palestinian monetary system would potentially benefit from a sovereign digital currency.

Feasibility Doubts Cast Shadow Over Palestinian Coin

With its research on the topic, the PMA joins dozens of central banking institutions around the world that have been exploring the possible issuance of a central bank digital currency (CBDC) in response to cryptocurrencies and declining use of notes and coins. These include the central banks of China, Russia, the U.S. and the Eurozone.

Palestine is a special case, however, as its economy is weakened and constrained by Israeli limitations hindering free movement of goods, capital and people. It’s also heavily reliant on international donations and remittances from Israel. That’s why some experts are doubting the feasibility of a Palestinian digital currency.

According to Raja Khalidi, director of the Palestine Economic Policy Research Institute, the issuance of digital money could “send a political signal to show apparent appearance of monetary autonomy from Israel.” But Khalidi also thinks that:

The macroeconomic conditions don’t exist to allow a Palestinian currency — digital or otherwise — to exist as a means of exchange.

Khalidi’s concerns were echoed by Barry Topf, former senior adviser to the Bank of Israel governor, who agreed it’s highly unlikely that a Palestinian digital currency would serve as a real means of exchange. “It’s not going to replace the shekel or the dinar or the dollar. It’s certainly not going to be a store of value or a unit of accounting,” the banker said.

Do you think a digital currency is a viable option for Palestinians? Share your thoughts on the subject in the comments section below.



from Bitcoin News https://ift.tt/3hnM4hd

Comments

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...