Bits of Gold Secures Regulatory Approval to Launch Shekel Stablecoin
Israeli crypto firm Bits of Gold has received regulatory approval to issue BILS, a 1:1 shekel-pegged stablecoin. The initiative aims to enable round-the-clock digital settlements and smart contract integration.
Israeli crypto firm Bits of Gold has secured approval from the Capital Market, Insurance and Savings Authority to issue and distribute BILS, a 1:1 shekel-pegged stablecoin, following a two-year regulatory pilot.
Unlike volatile cryptocurrencies such as Bitcoin, a stablecoin is designed to maintain a fixed value tied to a specific asset. In the case of BILS, one digital token represents one Israeli shekel. According to the published regulatory conditions, the currency will be backed by shekel reserves held locally in designated, segregated accounts to protect customer funds from mixing with corporate assets.
The introduction of a blockchain-based shekel stablecoin could significantly impact financial transactions, enabling round-the-clock settlements, digital asset trading against the local currency, and integration into smart contract applications. Users and businesses may soon operate using a digital representation of the shekel rather than converting local funds into US dollars for crypto transactions, pending platform support and adoption rates.
This development coincides with a period of strengthening for the Israeli shekel against major global currencies. Data from the Bank of Israel indicates that during the second quarter of 2026, the shekel appreciated by approximately 5.9% against the US dollar and 6.6% against the euro.
Despite the growth potential, key questions remain regarding redemption guarantees, reserve audit frequencies, and technological risk management. While the regulatory approval mandates strict oversight, liquidity requirements, and reporting mechanisms, inherent financial and operational risks persist.
It is crucial to distinguish BILS from a potential central bank digital currency issued by the Bank of Israel, as BILS is a privately issued asset operating under regulatory supervision. The initiative bridges local currency with blockchain infrastructure, and its ultimate success depends on real-world utility for businesses and the general public.
