Governor of the Central Bank of Israel says the large volume of stablecoin transactions requires strengthened regulation

Foresight News: According to CoinDesk, Amir Yaron, Governor of the Bank of Israel, has signaled that the country is preparing to take a more proactive regulatory approach toward stablecoins. Speaking at the Bank of Israel's "Payments in an Era of Change" conference in Tel Aviv, Yaron positioned private digital dollars as a payment force, stating that regulators can no longer treat them as a marginal phenomenon.

Yaron emphasized that stablecoins have become deeply integrated into global capital flows, with a market capitalization exceeding $300 billions and monthly trading volumes surpassing $2 trillions. He highlighted the industry's concentration risk, noting that 99% of stablecoin activity is controlled by just two issuers: Tether and Circle. He argued that this concentration exacerbates systemic vulnerabilities and increases the need for regulatory clarity.

Subsequently, Yaron outlined a series of priorities for private issuers and regulators, including full 1:1 reserve backing, liquid reserve assets, and the creation of a scalable regulatory framework. Yoav Soffer, head of the Israeli Digital Shekel project, also discussed the digital shekel initiative at the conference, stating that the digital shekel will become "central bank money for everything," and unveiled a roadmap for 2026, which includes plans to provide official recommendations by the end of the year.