Bank of Israel Says Virtual Currency Is A Financial Asset, Not A Currency

January 8, 2018 | The Bank of Israel announced on Monday that it would not recognize virtual currency, such as bitcoin, as actual local or foreign currency, according to a statement from the central bank. In the statement, Deputy Governor Nadine Baudot-Trajtenberg made it clear that “no official bodies such as central banks or governments stand behind them.” Baudot-Trajtenberg said virtual currency should be viewed as a financial asset. In her remarks, she defined the country’s official currency and foreign currency and then noted that “bitcoin and similar currencies do not fit the legal definition of currency or foreign currency”, under Bank of Israel law. Virtual currency is unregulated, digital money usually controlled by its developers and used by members of a virtual community. Bitcoin is a virtual currency that does not work with a central bank or administrator. The value of bitcoin has surged in the last month, according to Reuters.