Will Israel’s Cryptocurrency Sector Catch Up?

Although Israel is often called “The Startup Nation” and is often considered the go-to place for innovation, the country is, from a global perspective, falling behind on cryptocurrency adoption. Digital coins such as bitcoin and Ethereum are rather new and risky and the blockchain is not yet regulated, and the delay could be partly due to security concerns.

However, Israel has made some promising forays into the cryptocurrency field. Startups Fireblocks and Starkware have achieved unicorn status. Crypto-exchange giant Coinbase acquired Unbound Security for $150 million and Paypal purchased Israeli crypto company Curv for $200 million.

Those who are actively involved in Israel’s cryptocurrency sector are confident that the Startup Nation will catch up soon once they realize the benefits and convenience of digital securities and if regulators get involved in the online money revolution.

Ouriel Ohayon, CEO and co-founder of ZenGo, told calcalistech, “The number of players (In Israeli cryptocurrency) is still very, very small, but they are companies of very, high quality. I think the number will grow in the next few years because Israelis are very pragmatic and they see the economic opportunity and the perception of the industry has radically changed.”

Ohayon continues by discussing the negative reputation cryptocurrency once had as a “dark industry made for criminals.” However, this reputation has changed in the last couple of years as experts talk about cryptocurrencies as the future of money and use and adoption has broadened globally. For Israelis to accept bitcoin and other cryptocurrencies, Ohayon suggested, “There has to be a coordinated regulatory effort that protects investors but does not hamper innovation.”

Leaders in the Israeli Digital Currency Revolution

The following are Israeli companies that are top cryptocurrency innovators.

Starkware Industries

Netanya-based Starkware has achieved unicorn status and is a leading blockchain technology company that provides solutions for privacy and scalability. Management claims that Starkware can increase scalability 1,000 times. This allows companies to grow more efficiently and incorporate cryptocurrency in this growth.

Fireblocks

This company provides digital asset solutions for companies and organizations. They provide software and APIs that allow institutions to manage treasury operations, mint and burn tokens and organize digital asset operations. According to the company’s website, 1,000 organizations use Firebocks solutions and Fireblocks has transferred $2 trillion in assets. Its proprietary technology was developed by an award-winning team.

Qedit

Qedit increases privacy and security on the blockchain using Zero-Knowledge methods. The company is co-mentored by Professor Shafi Goldwasser who developed Zero-knowledge proofs which is a form of encryption that allows the verification of data without the disclosure of additional information.

Qedit allows users to carve out a secure area of the blockchain where they can deal with other users in a highly secure way. They can share information with clients and colleagues while protecting it from competitors and other threats.

Blox

Blox was founded in 2016 and operates in Tel Aviv. It provides bookkeeping services for accounting firms and payroll departments of businesses dealing with cryptocurrency transactions. The technology integrates multi-coins and exchanges.

Orbs

Orbs is a public blockchain infrastructure designed for businesses using trust as a competitive strategy. The company was founded in 2017 and has offices in Tel Aviv, San Francisco, Singapore, and South Korea.

Invest in Israel’s Tech Sector

Israel is making strides in cryptocurrency as it has in other technical areas. Now is the time to invest in Israel’s tech sector.  Be a part of Israel’s long-term tech growth with solid Israeli investments. The Jerusalem Portfolio, which is comprised of ETFs, is an Israeli investment with a comprehensive focus on Israel’s economic growth.

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