Israel Prepares for Stricter Stablecoin Regulations Amid Global Integration

According to ChainCatcher, Israel's central bank governor, Amir Yaron, has indicated that the country is gearing up for more assertive regulation of stablecoins. Speaking at the Bank of Israel's 'Payments in the Age of Transformation' conference in Tel Aviv, Yaron highlighted the role of private digital dollars as a significant payment force, urging regulators to no longer view them as peripheral. He emphasized that stablecoins are deeply embedded in global financial flows, with a market capitalization exceeding $300 billion and monthly trading volumes surpassing $2 trillion. Yaron pointed out the concentration risk within the industry, noting that 99% of stablecoin activities are controlled by just two issuers: Tether and Circle. He argued that this concentration heightens systemic vulnerabilities and underscores the need for clear regulatory guidelines. Furthermore, Yaron outlined several priorities for private issuers and regulators, including full 1:1 reserve backing, liquidity reserve assets, and the development of scalable regulatory frameworks. Yoav Soffer, head of Israel's digital shekel project, also discussed the digital shekel initiative at the conference. He stated that the digital shekel would serve as a 'central bank currency for everything,' unveiling a roadmap for 2026 that includes plans to provide official recommendations by the end of the year.