Market Analysis

Israel Will Ban Cash Payments Over $4,400 on Monday

israel-will-ban-cash-payments-over-$4,400-on-monday

Key Takeaways

  • Beginning August 1, Israel will ban cash for personal transactions over $4,400 and business transactions over $1,760.
  • The country will impose fines between 15% and 30% of the relevant transaction value on those who violate the law.
  • The law is meant to fight financial crime by promoting the use of digital payments, which are easier to monitor.

Beginning on Monday, citizens of Israel will no longer be able to use cash for transactions larger than $4,400 or $1,760, depending on the entity that they are transacting with.

Reductions Fight Illegal Financial Activity

Israel is tightening its grip on cash.

As of August 1, Israelis will be prohibited from making cash payments above 6,000 shekels ($1,760) in business transactions. According to law firm Herzog Law, this rule applies to donations, loans, and salaries as well as other business-related payments.

Additionally, citizens will be prohibited from making cash payments above 15,000 shekels ($4,400) in personal transactions.

These amounts represent a reduction from transaction limits that Israel previously set in 2019. At that time, business transactions were limited to 11,000 shekels ($3,220) while personal transactions were limited to 50,000 shekels ($14,660).

The law includes exemptions for charities, certain religious institutions, West Bank Palestinians, and family and relatives, but tourists must comply with the law. Additional measures prohibiting Israelis from holding more than 200,000 shekels ($58,660) in cash at home are expected in the future.

Those who violate the law will face significant penalties. Individuals involved in business transactions that violate the limit may receive a fine of between 15% and 30% of the transaction’s value, depending on the size of the transaction.

Individuals who violate the law in personal transactions up to 25,000 shekels will face a fine beginning at 10,000 shekels. If the transaction is larger, violators may face a fine of 15% to 25%, depending on the amount involved.

According to the Israel Tax Authority, the law is meant to reduce the use of cash by Israelis and fight against crime including money laundering, tax evasion, and terrorist financing.

The upcoming rules will promote digital payments, making it easier for authorities in Israel to monitor financial activity.

Other developments could also work toward this end. In June, the Bank of Israel announced that it would test the feasibility of a retail central bank digital currency (CBDC) later this year, with results expected by the end of 2022. A CBDC, like other digital payments, would be easy to trace and monitor.

Israel is just one of several nations that are developing or exploring CBDCs. France’s central bank announced this month that it is hoping to launch a “wholesale” CBDC—a digital currency for use between financial institutions—by 2023.

Elsewhere, in the United States, Federal Reserve Vice Chair Lael Brainard has stated that a CBDC could take “at least five years” to create following Congressional approval.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Bank of France Eyes 2023 for CBDC Launch

News

A “viable prototype” for a wholesale CBDC could be issued by France’s central bank by 2023. The technology will borrow major features from blockchains and DeFi protocols and will be…

Creating CBDC Would Take At Least Five Years: Fed Vice Chair

News

Federal Reserve Vice Chair Lael Brainard has stated that implementing a central bank digital currency (CBDC) in the United States would likely take five years. Five Years Upon Approval The…

BIS Releases Report Criticizing Crypto

News

A new BIS report has criticized crypto for its structural flaws, arguing that a lack of stable nominal anchor, scalability issues, fragmentation, and unregulated intermediaries all pose risks to the…

Click here for the the original source (post)