Israel’s regulatory authority launches blockchain-based messaging system
Blockchain technology is slowly making its way in our daily lives and public organizations, as well as business enterprises, are looking at ways to tap the vast potential of this innovation, which is still in its nascent stage. In one such move, the Israel Securities Authorities (ISA) said on Wednesday that it has started using blockchain technology to improve cybersecurity and meet information security challenges, according to local media outlet The Times of Israel.
According to the report, the distributed ledger technology has been embedded in one of the ISA’s systems called “Yael”. The system is used by the government agency to deliver messages and information to bodies under its regulation. The system was developed by a leading IT company called Taldor.
The report further adds that the ISA is planning to embed blockchain in two more systems in the near future. Firstly, the plan is to integrate it in an online voting system developed by the ISA to enable investors to actively participate in meetings from anywhere and later in Magna, which is used to record all the reports by bodies under the ISA’s supervision.
The innovative and transformative technology of blockchain is now being used by organizations all across the globe because it allows for secure information transmission on its network and there is also no need for human intervention.
According to the report, the ISA is quoted as saying that the move “adds another layer to ensuring the credibility of the information relayed to the supervised bodies. The technology verifies the messages’ authenticity, prevents fraud, and prevents them from being edited or deleted. Additionally, the system prevents the option of denying that a message was received from the ISA.
“The embedding of the technology in the national regulator’s information systems is in line with its vision to promote financial innovation in the capital market,” it added.
Natan Hershkovitz, director of the ISA’s Information Systems Department, said that “we are witnessing a growing trend around the world, and in the financial field, in particular, to embed innovative and revolutionary technologies.”
“Implementing blockchain technology in the ISA’s information systems makes it one of the global leading authorities in securing the information provided to the public and its credibility, and one of the leaders in Israel’s public sector,” he added.
As BC Focus reported earlier, Israel has been pondering over the topic of a state-sponsored cryptocurrency for quite some time. Since the Bitcoin boom of late 2017, Israel has been considering a “crypto-shekel” future. The aim is to decrease the cash transactions and the incidents of tax evasion and money laundering. In May 2018, the ministry announced via a draft endorsed by Moshe Kahlon, the Finance Minister about new reporting obligations for financial service providers with respect to cryptocurrencies.
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