German Bundesbank rejects official cryptocurrency plans, Israeli government does not

Carl-Ludwig Thiele, the member of the Bundesbank’s executive board, tells there is no reason to create a digital equivalent to fiat currencies, tells the local financial outlet. He also noted the volatility of the cryptocurrency market and stresses that this could lead to harmful events for investors. He even called Bitcoin framework an expensive and inefficient payment system, which might infuriate the active supporters of this cryptocurrency. And Mr. Thiele is also sure that euro in its current form is already based on mutual trust, without any blockchains enabled.

Meanwhile in Israel, the local government does not exclude a digital currency issued and observed by the government. The reason for this is more prosaic than some might hope — black market makes 20% of the country’s gross domestic product, and the governmental control over the blockchain of this potential altcoin might help to reduce this horrible number. If the Economic Arrangements Bill is approved, the Bank of Israel, the country’s financial regulator, will have a discussion panel related to this digital shekel.

Previously, Russian and Dubai governments voiced their plans on issuing their national cryptocurrency, but neither fulfilled these promises at the press time.