Stablecoin Developments in Israel and Pakistan

Israel's Capital Market Authority has given the green light for the issuance and distribution of the shekel-pegged stablecoin BILS following a two-year pilot program. According to NS3.AI, this approval marks a significant step in the country's financial landscape, emphasizing local-currency issuance. Meanwhile, the State Bank of Pakistan has revised its stance on virtual currencies by replacing its 2018 prohibition with a new circular. This change permits regulated entities to open bank accounts for licensed Virtual Asset Service Providers (VASPs) and their customers, provided they meet compliance conditions. These developments highlight a shift towards facilitating local-currency transactions and bank-account access, moving away from investment-only products.