It has been revealed that yet another government will be considering the likes of cryptocurrencies in place of an already-established national currency. In particular, this involves the Palestinian government’s plans to possibly demolish the Israeli Shekel reports Al-Monitor.
Said news was publicly announced on Tuesday, July 9, 2019, where the Palestinian Prime Minister, Mohammad Shtayyeh noted that the reason for considering cryptocurrencies stemmed from the obstacles that arose from the use of the national currency to the Palestinian economy.
Shtayyeh appears to be keen on this decision, reiterating since Saturday, April 13, 2019, that nothing can be a hindrance of such plans. He also noted that despite the billions of shekels in circulation,
“we’re not forced to remain dependent on the shekel.”
Amidst Possible Crypto Adoption, Is It Truly Feasible?
While the news is a big move, as more and more countries consider alternatives to their national currencies, arguments have been made against executing made plans. It has been emphasized that a national cryptocurrency is not
The news outlet has referenced an economic and social sciences professor based in Nablus, Bakr Shtayyeh, who does not think such moves are feasible for Palestine. Here are some of the concerns that have been expressed:
“If Palestine has its own currency, will it be able to prevent Israel from withholding tax clearance funds or controlling crossings and the movement of exports and imports? Will Palestine be able to conclude direct commercial deals with neighboring countries without the imported or exported goods passing through Israeli commercial ports?”
He further noted that the problem doesn’t rest in the national currency itself, but more so on the
“complex economic and political reliance on Israel.”
Israel and Palestine Relation to Prevent Crypto Adoption?
The economics professor believes that this endeavor could induce problems between Israel and Palestine. Some of which include Israel’s probable distaste for dealing with another currency and a rise in political tension. The latter alone could potentially devalue the cryptocurrency, which may defeat the main purpose behind considering its likes for economic gains.
Concerns Regarding Cyberattacks Disclosed
The professor further addressed the role of the Palestinian Authority (PA) needs to assume. In particular, he shared that an assessment needs to be done on the cryptocurrency to ensure that it can maintain a stable value.
With this being said, another area with concerns involves that of hacks and damages that could be achieved by Israel if political tension rises. That is,
“Is the PA capable of repelling cyberattacks and cyberpiracy that Israel could launch against the Palestinian cryptocurrency, especially since Israel is advanced in the field of software development?”
On the whole, Bakr Shtayyeh doesn’t think to issue cryptocurrencies as being impossible, but rather believes that there will be a lot of difficulties in making it happen. On the whole, Palestine needs to be considered with respect to the role it plays as a “consumer country” along with what the decision means for the national currency and economy.
As for the overall nature of the cryptocurrency, the Prime Minister supposedly did not share any specs. However, news outlet AA quoted him stating the following (closest possible translation):
“We are working to transform e-government into a reality that citizens feel,”
adding that more work needs to be done in,
“the preservation of information in official institutions,”
“the infiltration of information is part of the Israeli war on the Palestinian Authority.”