Israel restricts cash to promote digital payments
Israel’s government imposed more limitations on cash transfers on Monday to curb criminal activities and promote digital payments nationwide.
By the Law for the Reduction in the Use of Cash, Israeli companies and customers have been subject to limitations on cash payments since January 2019. It aims to move consumers and companies toward digital payments, enabling authorities to trace tax evasion, black market activities, and money laundering more efficiently.
Beginning on Monday, the restrictions on cash payments for corporate transactions have been reduced to USD 1,760, or 6,000 Israeli shekels, and USD 4,400, or 15,000 shekels, for personal transactions.
It is anticipated that future regulations would ban the storage of more than USD 58,660 or 200,000 shekels in cash in private houses.
Tamar Bracha, purportedly the head of law enforcement for the Israel Tax Authority (ITA), recently told Media Line that restricting the usage of cash would make criminal behaviour more difficult, stating:
The objective is to restrict the cash liquidity on the market since criminal organisations tend to depend on cash.
Some have seen the additional restrictions on cash transactions as a positive indication for the future acceptance of cryptocurrencies in the nation.
On Saturday, crypto influencer Lark Davis warned his one million Twitter followers that Israel is not the first nor the last government to implement such limitations. He used the occasion to mention Bitcoin.
Israel will prohibit cash payments exceeding $4,400 beginning on Monday. Therefore, you cannot pay cash for a secondhand automobile, a luxury purse, or another expensive item.
Meanwhile, Lyn Alden, creator of Lyn Alden Investment Strategy and a strategic investor, said the tendency “will likely spread to other nations over time.”