How does blockchain-finance work affect IT perspectives of Israel?
We are accustomed to the fact that the leaders of blockchain industry are the United States and representatives of the Asian region. However, in the coming years, the balance of power in the market may change. It is reported that Israel is actively developing blockchain-finance and related areas, thereby turning into one of the most favorable countries for launching start-ups. In the future, the state has every chance of becoming the leading blockchain hub, at least in the Middle East.
How does Israel integrate digital technology and promote blockchain-finance?
The country’s ambitions reached such a level that they began to call it the new “Silicon Valley”. A region in California is designated in such a way where the offices of major IT companies in the world are concentrated. In the “Holy Land”, there is a similar situation. The density of startups per capita is the highest in the world, and in the ranking of innovative economies, according to the influential business publication Bloomberg, Israel ranks 10th. It is noted that the state spends the most on research and development of modern technologies.
Blockchain business feels quite comfortable in Israel. The country provides local professionals with comfortable working conditions, so they do not have to emigrate. There are more than 80 young companies in blockchain field, 39% of which work in the niche of FinTech. Not least, this is due to the support of the industry at the legislative level. In particular, the Israeli Securities Directorate’s decree on regulating public ICOs, published in March 2018, is aimed at protecting representatives of the digital market, and not at infringing their interests.
Digital technologies are used not only at the level of startups. Bank Hapoalim – the largest bank in Israel – is working with Microsoft to develop banking blockchain guarantees. Also, the Bill Gates company will conduct educational activities for professionals who want to increase their knowledge of blockchain finance. For this, a contract was signed with the organization Blockchain Israel. According to it, the creation of the Israeli blockchain academy is planned.
Existing problems and development prospects
Despite the favorable current state, blockchain market of Israel is so far inferior in the pace of development to Asian countries. Nevertheless, now all the conditions are created for the state to become one of the leading centers of Fintech not only in its region, but also to influence Europe. According to the founder and CEO of Blockchain Israel, Yael Rosenzweig, good positions are playing into the hands of Israel in market regulation, artificial intelligence and cyber security. And the fact that it is a small country provides a high speed of project implementation. This is considered an important quality not only in blockchain industry, but also in the business as a whole.
Now there are many FinTech companies operating in the country and their positive dynamics.
The appearance hints at future growth. In particular, back in 2015, there were only 42 such firms. In addition, the ICO of the local startup Bancor in 2017 raised $ 155 million in 3 hours, which at that time was the second result in blockchain’s history. Obviously, Israel’s initial positions on blockchain-finance list of leading countries are strong.