Israeli Government to Buy Millions in Cryptocurrency for Compensation

币界网报道:The Israeli government has reportedly purchased millions of dollars worth of cryptocurrency to compensate victims of terrorism, according to local media. The move marks a significant shift in the country's approach to digital assets, as authorities previously expressed skepticism toward cryptocurrencies. The government's decision to use crypto for compensation payments aims to streamline the process and provide faster financial support to affected families. Officials noted that blockchain technology ensures transparency and traceability in fund distribution, reducing bureaucratic delays. This initiative comes amid Israel's broader efforts to regulate the crypto sector, including potential taxation policies and licensing frameworks for exchanges. While the exact amount of cryptocurrency acquired remains undisclosed, sources indicate the holdings include stablecoins to minimize volatility risks. The government has partnered with local financial institutions and blockchain firms to facilitate secure transactions. Legal experts highlight that this could set a precedent for other nations exploring crypto-based compensation mechanisms. Critics, however, raise concerns about price fluctuations and regulatory uncertainties, urging caution in large-scale adoption. The Israeli Finance Ministry emphasized that traditional payment methods will remain available alongside the new crypto option. Analysts suggest this development reflects growing institutional acceptance of digital assets for official purposes. The compensation program primarily supports families who lost members in attacks designated as acts of terrorism by Israeli authorities. Authorities plan to monitor the pilot phase before expanding crypto payments to other government disbursements.

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