Israel puts the brakes on cash to spur digital payments

08/01 06:11

According to Cointelegraph, 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: “The goal is to reduce cash fluidity in the market, mainly because crime organizations tend to rely on cash.”
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