Israel's Capital Market Authority has approved the launch of BILS, a shekel-backed stablecoin. Issued by licensed crypto operator Bits of Gold, BILS operates on the Solana blockchain and is fully pegged 1:1 to the Israeli new shekel.
This marks the first government-approved fiat-backed stablecoin in the Middle East. BILS is designed to support real-time payments and on-chain trading, offering local currency exposure and aiming to counter the dominance of dollar-pegged tokens. The development involved Fireblocks, with auditing by EY.
The global stablecoin market is valued over $316 billion, overwhelmingly dominated by US dollar-pegged assets. The introduction of BILS signifies growing acceptance of regulated stablecoins and Israel's strategic move to integrate its currency into digital payment systems.
Initially, the rollout will be restricted to institutional and qualified participants under strict regulatory conditions, including technology risk management and information security. Israel is also preparing a broader Stablecoin Law to formalize digital currency issuance regulations.
Israel's approach to crypto has evolved, leveraging its strengths in cybersecurity and blockchain development. The BILS token will allow holders to store, transfer instantly, and trade digital assets against the shekel 24/7.