Israel Set To Become Top Blockchain Base
Just like any other jurisdiction, Israel is having a number of challenges.
Israel’s Technological Environment To Propel Blockchain Adoption
As the world warms up towards the blockchain technology, countries such as Israel are taking a lead. The Middle East country is considered to be a leader in technology by developing advanced software. Compared to other global economies, Israel has the highest number of startups in the blockchain. The country is ranked in the 10th position as per Bloomberg data.
The country is now emerging to be a top force in the blockchain sector due to its technological history in sectors like cryptography. The country is also considered to have friendly regulations for startups. Israel further boasts of individuals with rich knowledge in technology
Early this year, the country had registered 88 blockchain startups. Out of the firms, 39% were under the fintech sector, 22% dealt in cloud computing while 21% focused on social media. The rest were registered under protocol development.
According to Orbs boss, Daniel Peled, a short-term report on laws governing the public ICO sector is a major step towards blockchain adoption in Israel. The report was released by Israel Securities Authority. He lauded the authority for providing a conclusive report that was well researched.
Peled stated that from the report, it was a clear indication that the country was backing the crypto sector and not out to kill it. He said that the authority wants to provide a balanced environment where cryptos can grow while at the same time offering protection to crypto holders.
Major companies in Israel are also acknowledging the role played by the blockchain sector. Last year, Bank Hapoalim partnered with Microsoft in a blockchain project geared towards setting up digital bank guarantees.
Peled added that several banks have been offering the necessary support to the blockchain technology. The banks are partnering with firms in the sector to roll out various projects.
Challenges On The Way
However, in Asia, the rate of blockchain adoption compared to Israel has been high. Countries like Japan and Korea which largely depend on mobile payments are a step ahead. The model makes it easier for blockchain integration.
Just like other countries, Israel is also facing its own share of challenges. The major challenge has been awareness. This issue has seen a number of firms take up the role of offering education to companies while at the same time highlighting sample use cases.
Israel is also facing the challenge of regulation. Peled pointed out that regulators have been engaging with relevant stakeholders, but there is still a lot to be done.