Israel Approves First Regulated Digital Shekel Stablecoin BILS

Israel has approved its first regulated stablecoin pegged to the national currency, marking a major step toward integrating blockchain technology into its financial system. The country’s Capital Market Authority granted authorization to Tel Aviv-based crypto exchange Bits of Gold after a two-year evaluation and pilot program.

The newly approved token, called BILS, represents a digital version of the Israeli shekel designed for use in blockchain-based payments and financial services. The project was developed in collaboration with the Solana blockchain network, while crypto custody services were supported by Fireblocks. Oversight of auditing procedures was provided by global consultancy firm EY to ensure compliance and operational transparency.

Stablecoin Sector Expansion Drives Regulatory Momentum

The approval arrives during a period of rapid expansion in the stablecoin market, which has grown to more than $300 billion in total value over the past 18 months. This growth has been fueled largely by the introduction of clearer regulatory frameworks in major economies, particularly in the United States.

However, the strong dominance of U.S. dollar-pegged stablecoins has raised concerns among policymakers worldwide about dependence on dollar-based digital payments. Countries are increasingly exploring local currency stablecoins to protect financial sovereignty and support domestic monetary systems.

Strong Shekel Performance Supports Digital Currency Push

The Israeli shekel has been among the strongest performing currencies against the U.S. dollar over the past year, gaining more than 20% according to market data. Officials and industry participants say bringing the shekel onto blockchain networks positions it alongside other major currencies such as the euro, yen and Singapore dollar that are beginning to gain adoption in blockchain-based financial infrastructure.