Israel puts the brakes on cash to spur digital payments
Authorities in Israel on Monday has in put in place further restrictions on cash payments as a means to combat illegal activity and spur digital payments in the country.
Since January 2019, Israeli businesses and consumers have been subject to limits on cash payments under the Law for the Reduction in the Use of Cash. It’s aimed at shifting the country’s citizens and businesses toward digital payments, allowing authorities to more easily track tax evasion, black market activity, and money laundering.
From August 1, the limits on cash payments have been tightened to 6,000 Israeli Shekel (NIS), equivalent to $1,760 United States dollars (USD) for business transactions and NIS 15,000 ($4,400 USD) in personal transactions.
Further restrictions are expected to follow in the future, prohibiting the stockpiling of more than NIS 200,000 shekels ($58,660 USD) in cash at private residences.
Tamar Bracha, who is reportedly in charge of executing the law on behalf of the Israel Tax Authority (ITA), recently told Media Line that limiting the use of cash will make increase the difficulty of criminal activity, stating:
Meanwhile, the new limits placed on hard-cash transactions have been seen by some as a good sign for future crypto adoption in the country.
On July 30, Crypto influencer Lark Davis told his 1 million followers on Twitter that Israel is neither the first nor last country to introduce such restrictions, and took the opportunity to reference Bitcoin in his post.
From Monday Israel will ban cash payments over $4,400! That means you cannot pay cash for a used car, designer bag, or any other higher ticket item. Not the first or last country to introduce such restrictions. Got #bitcoin?
Meanwhile, strategic investor Lyn Alden,
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